Drivers in the UK are being urged to look at their vehicle insurance policies in order to determine whether there are hidden charges involved – charges that are designed to make the consumer shell out even more money and help the insurance companies cash in.
According to recent reports a variety of leading insurance companies could be making two million pounds or more extra each year through the implementation of these hidden charges, with many customers blissfully unaware of the charges until it is too late.
According the reports, many customers are duped because the hidden charges and applied for a range of basic services that are often included as part of the insurance policy with other companies, such as offering a courtesy car, administration involved in changing vehicle details, and even the administration of changing address details. Visit yourinsurancequote.co.uk to leans more about this topic.
Experts claims that many people are tempted into taking out cover with big name insurers offering what seem to be excellent rates, but there is no mention made of the other charges that will be applied for services that many think are part of the insurance package.
Another way in which many insurance companies are raking in the profits is through the interest and administration charges that they apply to the premiums of consumers that pay on a monthly basis rather than by one annual payment. For many this is the only way that they can afford to ensure their vehicle, but many insurers use this in order to boost profits even further by charging extra for the privilege.
One expert involved in the research stated: 'Some insurers are cashing in. Millions of drivers are hit yet their premium already includes a good proportion of profit for the insurer.' An AA spokesman added: 'It is vital that before buying your policy you ensure it meets your needs. If administration fees were not included, then premiums charged would have to include an element for that.'