Motorists taking part in the new for cars are being stung by hefty administration fees, according to insurance experts.
Researchers at uSwitch.com said insurers are cashing in on the new scheme – which sees motorists given money off a new car when they scrap their old model – by imposing mid-term ‘adjustment fees’ on customers who swap vehicles before their policy is up for renewal.
On average, drivers are being forced to shell out £19.40 for the privilege of changing cars, uSwitch said, but some insurers are charging as much as £35. A spokeswoman for the price comparison site told Which? that, of all the insurers it looked at, Hastings Direct is one of the only ones that doesn’t charge customers for switching vehicles between policy renewals.
Car insurance fees
Ashton Berkhauer from uSwitch said: ‘Consumers opting for the may soon find the shine taken off their new vehicle when they find themselves hit with disproportionate ‘admin’ fees when updating their existing car insurance policy for the new vehicle.
‘Even those motorists who find the cover for their new vehicle to be cheaper than the amount they paid to insure their older vehicle will still be subject to a policy adjustment fee, which certainly diminishes any money saved on their premium.
‘Motorists must do their research when it comes to charges “hidden” away in the terms and conditions of car insurance policies and could potentially save themselves a significant amount of money if they opt for one of a number of providers who do not charge for making mid-term adjustments to policies.’
Best car insurance
To find affordable cover that meets your needs, and for a list of Best Buy policies, head over to the Which? guide to car insurance.
Follow Which? Car on Twitter
The Which? Car team is on Twitter, to offer you help and advice as and when you need it.
We’re monitoring our Twitter account every day, so if you have an account, please send us you thoughts and questions to @whichcar.
Don’t worry if you haven’t got a Twitter account – you can still stay in the loop by regularly checking www.twitter.com/whichcar.