More sneaky charges from car insurers over last six years

A recent report has shown how more and more vehicle insurance companies in the UK have started applying sneaky charges to the policies of consumers, contributing to the soaring cost of vehicle insurance. Over the past six years the number of insurers applying these so called sneaky charges has soared, making it costly for consumers to take out and maintain their vehicle insurance policy.

Research was carried out to show how an increasing number of insurance firms were applying these charges. Since 2004 the average cost of making changes to policies has risen steeply, and the number of insurance firms that make these charges has rocketed since this time.

The figures show that six years ago around 22 percent of insurance firms charged a fee for an early cancellation, but this has now increased to 70 percent. In 2004 only 17 percent of insurance firms made a charge to change details on a policy but this has now leapt to 67 percent.

The cost of making charges to policies or cancelling them early can be very high these days, with some average fees thought to have doubled based on the figures, which were compiled by Defaqto. Some insurance firms now even charge set up fees and renewal fees to customers that want to take out cover.

Mike Powell, insight analyst for general insurance at Defaqto, said: ‘There has been a noticeable and significant trend for motor insurance policies to charge administration fees for features that were in many cases previously standard services. Many consumers will be unaware that they may actually be paying a set-up fee or a renewal fee for their motor insurance. Such fees will be detailed in the accompanying documentation or in the renewal quote.’

Tags: fee, insurance firms, Vehicle insurance, Insurance, finance

Keeping insurance costs down

For most people having insurance cover in place is a way to provide a financial safeguard against a plethora of possibilities, from the chances of having a car accident to the chances of being burgled or falling ill. There are many different types of insurance policy available these days, with cover to protect against a wide range of events and possibilities, and having this cover in place can provide consumers with real peace of mind.

 The cost of cover can vary depending on a number of factors, such as the type of cover being taken out, the level of cover, and any past claims made, amongst other things. However, the insurance market has become incredibly competitive with a wide range of companies vying for the business of consumers, and this has resulted in some very competitive deals being made available for consumers.

 In this day and age, with many people still reeling from the recession and the global credit crisis, it is vital to try and keep costs down, and therefore it is important to ensure that you get the best deal on your insurance cover no matter what type of policy you are looking for. There are plenty of deals available these days offering all sorts of incentives from cut price protection to several months of free cover.

 Some people have decided to cut back by cancelling their insurance policies altogether, but this can work out to be very costly in the long run if something goes wrong. An alternative is to try and reduce the level of cover to one that you can comfortably afford, although you should make sure that you do not under-insure yourself otherwise you may still face financial difficulties if something goes wrong.

 Another important thing to consider is the importance of comparing policies from a wide range of providers, as there can be a big difference in price and you could find that you are paying far less with one company for the same level of cover than with another. There are various price comparison sites now available that will allow you to compare different insurance policies and companies with ease and speed, and you can really save time by using these. However, do bear in mind that not all insurance firms operate through these price comparison sites, so it may be worth checking on individual insurance firms’ sites to try and get the best deal.

Tags: insurance policies, insurance firms, insurance policy, Insurance, Types of insurance

Holidaymakers slate insurance firms over volcanic disruption

Thousands of UK holidaymakers and business travellers have had their plans disrupted following the volcanic ash cloud that has swept across from Iceland, affecting both the UK and neighbouring European destinations. For the first time British air space was effectively closed down due to the risk of damage to plane engines.

However, this left many people stranded in airports and unable to travel, and for many a major concern was being able to get their money back. Whilst airlines have been offering refunds to those that cannot travel because of the natural disaster, there is no compensation available for those that booked DIY holidays in terms of accommodation costs and car hire.

DIY holidaymakers could now end up getting a very raw deal, as although they will get their flight money back they could stand to lose a fortune in accommodation and car hire costs, as well as other related costs such as any excursions that they may have pre-booked.

Many are now turning on their insurance firms, accusing them of hiding behind the defence that the volcano eruption was an ‘act of God’ in order to avoid having to pay compensation to those that have been unable to travel. It is thought that personal losses from the disaster could amount to £20 million, and this is something that insurers will naturally want to avoid paying if they can.

One holidaymaker who was stranded at the airport because of the volcanic disruption said that her insurance company had already said that they would not be paying for her financial losses.

The customer said: ‘We rang our insurance company and they said it was an “act of God”, so they won’t cover us – we’re stuffed.’

Tags: Insurance, holiday, travel, insurance firms, disaster