Beware the hidden extras on car insurance

As if taking out car insurance isn’t expensive enough – in fact, recent reports show it coming out at around £815 per year on average for a fully comprehensive car insurance policy, but there’s also a number of hidden extras that you may find yourself paying if you need to actually do anything with your policy – even just renewals can hit you for hidden costs.

So, what are the things you need to look out for with car insurance policies?

Cancellation of a policy – yes, there’s a legally enforced 14 day cooling-off period, but if you cancel in that time, don’t expect all of your money back. You’ll be deducted the time the policy was used (fair enough), but also an administration fee. This could be anything up to £100.

Taking out a policy – yes, some insurers even charge for the privilege of taking out a policy with them in the first place. The audacity! 

Got a black box? You’d be right in thinking that it brings down the overall price of your insurance if you’re a sensible driver, but the cost of cancelling a black box policy after the cooling-off period can be up to £125. And that’s before the £100 you’ll have shelled out to have one fitted. 

Moved house or need to change personal details? Some insurers even charge for a simple modification like changing the average number of miles you drive each year. 

Paying monthly is a fairly common way to see you ending up paying more. Far better if you can pay up front and save yourself the APR that most insurers charge for a monthly premium.

Protecting your no-claims bonus – this can cost up to £25, but, as it can save a considerable amount off your annual policy, is one surcharge that is undoubtedly worth making.

Need it on paper? Much like certain airlines, some insurers can charge extra for the cost to print your documents for you. 

Our advice? If you do think you may need to make changes to your policy, be sure to check carefully if there will be a cost implication when renewing your car insurance policy. Consider every scenario that may happen (say, you’re thinking about a new car this year, or you’ll be driving overseas) and ask the insurer what the costs are before you go ahead. 

Our insurance providers are all here, ready and waiting to help you save and avoid any nasty surprises further down the line. 

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