Minor changes to insurance policies could cost as much as £55 a time. Insurance providers are imposing administration fees for alterations to policies, such as a change of marital status or address.
Which? Money has discovered that seven-in-ten car insurance providers and one-in-three home insurers will impose admin fees for small changes to a customer’s policy. In some instances, the sums involved appear disproportionate to the work involved in making the alterations, which involved a minor amendment to a document that is then sent by email or post to the policyholder.
Research found that car insurers charge customers £21 on average for policy detail changes. Home insurers impose £18 on average for changes. Some insurers are charging £30 for additional copies of policy documents.
Tough luck for young drivers
Among the highest chargers are those who specialise in insuring young drivers – who tend to be paying high premiums in the first place. I-Kube, for instance, charges £55 for changes. On the home insurance front Bluefin charges a £35 fee for changes.
Cancelling a policy can also prove expensive. Which? Money found that consumers are losing significant percentages of their premium refund and facing fees of up to £85 for cancelling their insurance mid-way through their policy term.
Which? chief executive Peter Vicary-Smith said: ‘Whether it’s £30, £55 or an £85 fee, insurance companies are going to have a hard time trying to justify the exorbitant charges they’re billing for routine tasks such as changing an address on a policy or providing duplicate policy documents.
‘It’s about time insurance companies start treating their customers fairly and make administrative charges proportionate and transparent.’
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