Car insurance companies have been desperately trying to bolster their profits by squeezing as much money as they can from their customers whilst doing their best to wriggle out of paying claims, according to some industry experts.
In the wake of new figures recently revealed by the AA that indicate the average car insurance rate in the UK could be more than £1,000 in just 12 short months, industry experts have identified several areas that motorists are being shortchanged.
Premiums have been soaring over the past 12 months, which has resulted in more difficulties for motorists trying to find discount car insurance. Drivers experienced a 40 per cent hike in insurance rates in 2010 as the average price of a comprehensive policy rose to a total of £892.
Many insurers have been whittling away at policy holders by instituting stealth fees. Some insurance providers will charge a renewal fee of £25 and an address change fee of up to as much as £55.
Another growing trend in insurance policies is the institution of higher excesses. As an excess is the amount drivers are expected to pay out-of-pocket before the insurer will foot the rest of the bill, many insurers are reducing the amount of money they are spending by including not only compulsory excesses but voluntary ones as well.
Insurers have also begun to take advantage of one of the most common ways motorists shop for insurance as well. As many will shop for the best deals over the Internet, insurers have begun to offer headline deals designed to hook customers before hammering them with baffling small print and extra charge after extra charge.
Consumer advocacy groups have been up in arms over some of the more underhanded tactics insurers are deploying.