The rising administration fee is increasing the car insurance bills for the motorists in UK. According to a leading financial research company in the country, it is getting increasingly common for the insurance providers to add the administration expenses to the cost of insurance product.
The company has observed that since the year 2004 the scale of administration fees being levied on the customers has been rising almost dramatically. In fact, for the past six years, the number car insurance policies charging admin fees has increased considerably.
While it was just two percent policies charging admin fees six years back, it is now seven percent. If we compare car insurance policies charging adjustment fees in the same time, the percentage increased from 17.3 percent to 67.1 percent.
A high percentage of insurance policies charge from the customers a fee for duplicate documents, cancellation charges. In fact, these charges have somewhat institutionalised. Some 4.7 percent of the car insurance policies charge a renewal fee too. If this is not all, the financial research company has indicated that a set-up fee is about £21.77 on an average while an adjustment fee is £18.84.
An insight analyst at the financial research firm has warned that as much as £85 can be added for inflating the already soaring car insurance costs for the motorists. The trend towards car insurance policies charging admin fees from the customers is significant as well as alarming. However, in many cases these admin fees were previously basic services.
A very high number of the car insurance customers will be actually aware that they are paying various admin fees on their policies such as renewal fee, set up fee or duplicate documentation fee. It is important for them to understand each term of their car insurance policies so that they do not end up paying extra than required.
The company has observed that since the year 2004 the scale of administration fees being levied on the customers has been rising almost dramatically. In fact, for the past six years, the number car insurance policies charging admin fees has increased considerably.
While it was just two percent policies charging admin fees six years back, it is now seven percent. If we compare car insurance policies charging adjustment fees in the same time, the percentage increased from 17.3 percent to 67.1 percent.
A high percentage of insurance policies charge from the customers a fee for duplicate documents, cancellation charges. In fact, these charges have somewhat institutionalised. Some 4.7 percent of the car insurance policies charge a renewal fee too. If this is not all, the financial research company has indicated that a set-up fee is about £21.77 on an average while an adjustment fee is £18.84.
An insight analyst at the financial research firm has warned that as much as £85 can be added for inflating the already soaring car insurance costs for the motorists. The trend towards car insurance policies charging admin fees from the customers is significant as well as alarming. However, in many cases these admin fees were previously basic services.
A very high number of the car insurance customers will be actually aware that they are paying various admin fees on their policies such as renewal fee, set up fee or duplicate documentation fee. It is important for them to understand each term of their car insurance policies so that they do not end up paying extra than required.
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