Car insurance customers suffer rise in administration fees

Thu, 16 Sep 2010

There has been rapid growth in both the prevalence and the scale of charges for administration fees in car insurance policies, it has been revealed.

Defaqto, the independent financial research company, observed that there has been a significant trend for car insurance policies to charge administration fees for features that were previously considered standard services.

"Many consumers will be unaware that they may actually be paying a setup fee or a renewal fee for their motor insurance . Such fees will be detailed in the accompanying documentation or in the renewal quote," commented Mike Powell, insight analyst for general insurance at Defaqto.

Earlier this week, research conducted by confused.com revealed that specialist car insurance firms that promise cheap deals for women often charge over the odds for cover.

The website warned that self-anointed female-friendly firms can charge hundreds of pounds more than mainstream insurers .
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