Very cheap car insurance news
15/10/2010
Some policies have fees that bite
A recent survey has revealed that very cheap car insurance may not always quite be what it claims to be, with around 70% of insurers charging administration fees to drivers who wish to amend their policies.
Data from independent financial research company Defaqto indicates that the average fee for an amendment is slightly below £19; however, it also claimed that one company which considers very cheap car insurance to be among its specialities actually charges customers who wish to make changes to their polices as much as £35 for the service.
Indeed, the Financial Ombudsman Service has said that some providers are charging as much as £110 for these relatively simple administrative processes.
As such, it has advised motor insurance providers to charge at a level which more accurately reflects the true administrative cost.
However, industry experts advise drivers that just as they are prepared to do the groundwork necessary in finding a quote for very cheap car insurance, they should also work hard to have these administrative fees waived, when possible.
Mike Powell, from Defaqto, comments, "It is worth asking not to pay the fee but that will be down to the discretion of the insurer. If you have been with it for a while it may withdraw the charge."