Car insurance: Drivers warned of ‘unfair hidden charges’ that could cost £ 123 per year
A survey of 1,500 UK drivers found that motorists pay almost a third of an average annual car insurance policy on top of their current bill, only in hidden charges. On average, Brits spend £ 123.40 in hidden car insurance costs each year.
This rises to £ 334.40 for drivers aged 18-24, almost seven times what drivers aged 55-64 have experienced who pay £ 49.70.
About 36% of drivers are regularly surprised by the adjustment fee, followed by 30% not realizing the cost of the cancellation fee.
An additional 28% are unfamiliar with add-ons and 24% annual percentage rates (APRs) which calculate the percentage of the premium for which a customer will be billed.
Research also found that drivers pay almost a third of an average annual car insurance policy (£ 412) on top of their current bill, just in hidden charges.
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He said: “Average auto insurance policies are not suitable for today’s consumers. Drivers want the flexibility to cancel a policy or make adjustments, but in most cases flexibility comes at a cost in the form of hidden charges.
“Cuvva’s mission is to simplify auto insurance to better meet the real needs of consumers. Auto insurance should be there when you need it.
“Whether it’s just an hour or continuous coverage, it shouldn’t be superimposed on hidden charges, penalties and unfair interest. “
The majority of these fees are hidden because they often go unnoticed by drivers who do not read the fine print in police documents.
More than one in 10 drivers said they were put off by long car insurance policies, with 30% of young drivers not reading the terms and conditions in full, and could end up without a pocket in the long run.
Cuvva advised drivers to always read the fine print and the terms of the business agreement before purchasing an insurance policy.
Hidden charges are often found in the conditions and will give the driver a better idea of what they are paying.
Drivers can also request a full cost breakdown before accepting a quote or renewing a policy.
They should also know the APR if they opt for annual coverage paid in monthly installments.
Some insurers offer monthly policies that don’t charge interest, although some insurers may charge up to 39% on top of the premium itself.
Motorists are also urged to make sure their contact details are up to date, and if they change, drivers should notify their insurers as soon as possible.
They may be penalized or uninsured if their information is incorrect.
As with any type of insurance, drivers should research the best deal at the end of each year to make sure they’re getting the best deal for their money.