Research undertaken by a leading car insurance company has revealed that annual policies are becoming increasingly expensive for many motorists. Car insurance for young drivers has always been costly, but soon it could be all drivers who are feeling a financial strain.
The reason for this is that insurance companies are attempting to obtain as much money as they can from their policy holders in a bid to keep up their profits.
One of the ways in which motorists are being charged extra is on administration fees. One insurance provider reportedly even charged its customers £55 to change the address on their policy, and £120 if they want to cancel it altogether.
Insurance companies charging their customers to change details of their agreement is a trend which has been on the rise over the last few years. In 2004 only 17% of the companies surveyed would charge, but in 2011 the number had increased to 67%, according to the Defaqto research group.
Furthermore, the extra fees and premiums which customers are paying are usually kept entirely by the companies upon cancellation, or will only by partially refunded to the client.
Individuals searching for car insurance for young drivers are no longer the only people being caught by excessive insurance policy charges. Many companies will hide extra fees in the small print of the contract, so all motorists are being encouraged to be vigilant in checking all the details of their policy before becoming customers.