✓ Keep Up To Date With Any Price Changes
If Your Dynamo Contract or Policy started after 01/01/2021
Each year, your Fee for our services will be increased by the RPI rate of inflation announced in February plus 3.8%. If the RPI is negative, we’ll only apply the 3.8%. RPI is a widely recognised measure of the general level of inflation. Several industries use it as a guide on whether to adjust prices and by how much.
As a Dynamo Cover user, the RPI will impact the fee charged for our services – We reserve the right to amend the cost for our services during your agreement, and pass the cost on to you the consumer. Please refer to our Terms of Business for further information.
The Retail Price Index rate was published on the 15th of February 2023 and it was 13.4% – For further information, visit ONS (Office for National Statistics)
We’ve put together a handy guide on what RPI is how it’s calculated and why we believe that even with a price increase, you’ll be hard-pressed to get a deal as good as Dynamo.
What is RPI?
RPI stands for ‘Retail Price Index’ and is a widely recognised measure of the general level of inflation. Several industries use it as a guide on whether to adjust prices and by how much.
How is the RPI Calculated?
The Office for National Statistics (ONS) measures RPI by looking at a basket of around 700 consumer goods and services, comparing the price changes month-on-month and year-on-year.
When the government announces this figure, we will calculate the adjustment based on this of the total price of your policy, excluding any discount or promotion you have already received.
When will I know how much I need to Pay?
We will email you in February, once the figure has been announced. We will detail to you how the figure has been calculated and include further details as to how this will be debited. We will usually issue you an email which breaks down how the figure has been calculated.
How do I pay my RPI Increase?
We will use the card held on file to process this charge – Should the payment card have expired, payment bounce or fail then we will issue you an invoice which is payable within 14 days. We do not accept Cheques or Cash to pay for these increases.
Why does Dynamo charge RPI?
When you use Dynamo, the cost of our services can vary over the period of your contract. Costs such as Wages, Fuel, Rent, Telephone & Internet Bills etc can all increase. As a result, rather than charging customer’s a high cost upfront, we instead will be guided by increasing our fee’s with what the UK Government suggests looking at a variety of industries – We reserve the right to amend the cost for our services during your agreement, and pass the cost on to you the consumer.
My other provider does not charge this?
That may be the case as it is up to each provider how they calculate and issue charges. It is likely however that the product you purchased from Dynamo Cover is both a better quality (4 or 5 Star Rated), and also cheaper upfront. This is because as a business we believe our customer’s prefer Paying a lower fee and low midterm fee, as apposed to a larger cost upfront.
As a comparable example: Dynamo Cover was found to sell products at up to 60% discount compared to it’s competitors for the same quality product. This means that your £30 upfront purchase price, and a £3 adjustment is still less than £65 a competitor charges.
What does RPI adjustment cost cover?
Like many other businesses Dynamo is experiencing rising costs as it invests in keeping pace with growing consumer demand. The use of our services rose by more than 20% last year and we invest heavily in our technology and staff levels to always ensure we offer a high level of service. Our technology means that we’re always at the forefront of being able to offer the best product, with the best service at the best price.
We conduct regular studies to review competition within the market, and have not yet been able to find a competitor who offers such a comprehensive range of 4 and 5 star products at such a competitive price (even with an annualised adjustment)
Where does it say this?
As a regulated business, we follow the guidelines set by the regulator and we are very clear and upfront in our advertising to ensure that customer’s are aware of any price increases – We also have value measures in-place to ensure that we’re always treating our customer’s fairly and will never issue any ‘surprise’ charges without detailing them extensively in our Terms of Business.
If you refer to your Terms of Business contract, on Page 6 you can find details on this term.
I Paid in full so why do I get charged an RPI Adjustment?
When you purchase a policy from Dynamo Cover you are signing up to a minimum 12 month contract. Under this contract we are legally obliged to provide you with the services detailed in your contract for this period, as a result because these costs of facilitation can alter over the 12 months this is why they are subject to RPI Adjustment.
You may have elected to pay in full upfront, instead of signing to a credit agreement to break your payment into 12 monthly payments (which would incur more fees/interest) but they are both treated the same way.
Will my RPI fee be added to my cancellation?
If you have not paid your RPI charge or are still due to pay amounts on your monthly direct debit payments then you will be required to pay these before you cancel your policy in addition to any early cancellation fees/premium payments still due. You can cancel your cover anytime by clicking here.