Since 2004, many car insurance companies have fundamentally changed the manner in which they operate. By beginning to charge for services that were traditionally included in car insurance rates, fees and charges have quickly begun to add up. Now, when motorists amends their details, makes changes to their policy, or even renew a policy, they are charged for the privilege.
Recently published research has determined that seven out of every ten car insurance companies will charge their customers if they seek to end their policies prematurely, a rise of 22% over the past six years. Furthermore, 67 per cent of insurers charged motor car insurance holders a fee when they wished to change the details of their policy, an increase of 17 per cent since 2004.
The revelation was also made that there has been considerable alteration of the attitudes of insurance companies since 2004. Now, one in every three companies issue charges for a request to receive documents in duplicate, 7 per cent have an initial set up fee, and 5 per cent have a charge levied upon renewal of a policy.
Administrative costs have risen sharply as well, as the previous average of £10.50 has been hiked to a new high of £21.77. Additional renewal fees now cost customers £17.49, when previously they were only costing consumers £12.32. Policy cancellations can be the most expensive undertaking, as the premature cancellation charge issued to customers can be as high as £37.44.
One Defaqto analyst, Mike Powell, stated that he had witnessed an increase in how many additional charges are being placed by any number of car insurance companies. Upon initially obtaining the cover, a great many customers are not made aware of the additional fees as the quote normally contains all those details.