Carpetright adds extra mark-up to insurance claims
Carpet store Carpetright charges 40% more to insurers than it does to high street consumers, an investigation by the Guardian newspaper has revealed.
Carpetright’s 450 stores across the UK receive £30 million of their annual income from insurance claims – on which they charge an extra £1 per square metre compared to standard consumer prices.
Although other major carpet stores, including Allied Carpets, the Fitted Carpet Company, and Country Carpet Warehouse, impose no extra fee for insurance claims, Carpetright defends the practice.
Richard Renouf, Carpetright’s director of consumer affairs, said if customers were buying a carpet themselves they would “pay the fitters directly”.
By contrast, with insurance claims Carpetright has to provide “a complete package including fitting” – so the fitter’s bill is included in the cost of the carpet.
A spokesperson for the Association of British Insurers (ABI) said he has never heard of companies charging more for insurance claims.
Direct Line responded to the Guardian’s report by launching an immediate investigation.
“We were not previously aware of this practice and have launched an investigation to find out what effect this may have on customers,” said Erica Nelson of Direct Line.
“We want to ensure our customers get good value for money with insurance settlements and will be discussing the matter with our supplier as a matter of urgency.”
Category: DirectLine Insurance News, Home Insurance News, Insurance News
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