An independent survey has revealed that car insurers are charging motorists high fees on top of annual premiums.
A Which? report found that some companies were demanding up to £75 for cancelling a policy. Other companies were charging £30 for duplicate documents or £50 for a policy to be renewed. Others charged £75 for cancelling a policy, even if it still fell within the cooling-off period.
One company, IGO4, wanted £35 for adjustment fees, which include such things as a name or address change.
Five companies were found to charge nothing for this service.
Other companies charge for processes, that are usually free. Axa Direct, for example, charge £30 to provide duplicate documents.
Richard Lloyd, executive director of Which?, told the Daily Mail: “We’ve found some insurers charging customers eye-watering admin fees that can be hard to avoid.”
He added: “We want companies to ensure their fees reflect actual costs, and aren’t just a way to squeeze more money from customers.”
Industry leaders have responded by saying that the market was highly competitive, and that overall premiums were lower than they were two years ago.
The Association of British Insurers advised customers to make sure that they read their policy document thoroughly in order to check for any fees that may be extra to the initial premium.
James Dalton, director of general insurance, told the Daily Mail: “In accordance with the rules of the Financial Conduct Authority and relevant legislation, the fees insurers charge must be clearly and fully set out, and broadly reflect the costs they incur.”