Drivers are being charged unfair motor car insurance fees for renewals and minor policy alterations, it was recently revealed by a leading consumer campaign group.
Consumers that are relieved to find discount car insurance are in for a nasty shock if they ever have to make a minor amendment to their ‘inexpensive’ policy, researchers from Which? magazine recently said. Drivers can be charged as much as £30 for updating their personal details, changing their address, or transferring their insurance to a new vehicle – and these fees are on top of any changes to motorists’ car insurance rates if their circumstances change significantly enough to warrant a rate hike.
The consumer group found that there are many other ways that some car insurance companies stick it to their customers. Policy cancellations are often accompanied by hefty fees, and there are some instances where a simple policy renewal can lead to ‘processing fees’ as well, researchers found.
Charges need to be made much clearer than they are now, Which? said, as most insurance websites do not have these fees easily accessible or prominently displayed when it comes time for customers to purchase a new policy or make alterations to existing cover.
Peter Vicary-Smith, chief executive of Which?, stated that he found it disgraceful that insurance providers charge such massive fees to their customers looking to make quite basic policy changes. The chief executive also remarked that insurers shouldn’t be using these fees as a way of lining their wallets with the cash of consumers who are already finding it a struggle to pay exorbitant insurance premiums and should instead charge fees that reflect the actual cost incurred by the company when changing personal details.