The Hidden Costs of Car Insurance
The consumer watchdog ‘Which?’ has undertaken a study of 34 home and 39 motor insurance provider websites and revealed that costly fees are often being charged for simple policy administration tasks. Car insurance comparison site Tiger.co.uk investigates.
The recent investigation by consumer group ‘Which?’ has highlighted that some home and motor insurance companies are charging high fees for basic policy changes and renewals. The report highlighted examples of charges of around £30 -£35 to change simple details such as a surname or address. Somewhat more surprisingly the consumer group also named and shamed some insurance firms that are charging drivers a fee for renewing and setting up their policies.
The report moved on to look at the levels of interest being charged to drivers who opt to pay their insurance in instalments rather than in one lump sum. Most of the insurers investigated were found to be charging in the range of 29% to 32.3% in interest dependent upon the policy.
All of these charges are often buried in the policy small print and the report appealed to insurers to make sure all information relating to fees is more clearly published on websites and within insurance policy documentation.
Andrew Goulborn, Commercial Director for Tiger.co.uk commented: “Shoppers need to be savvy and make sure they always check the small print. Using sites like Tiger.co.uk to compare car insurance provides drivers with the perfect opportunity to shop around, check through the policy details and click through to insurer sites to read more if they need to. We would also suggest that shoppers to always try to pay their premium in one single instalment so as not to incur any interest charges. A very good way to do this is to pay on a 0% on purchases credit card which enables you to pay the sum back at 0% over a given period”.