Beware of Hidden Costs: Go.Compare Warns Drivers to Consider Admin Fees When Insuring Their Car

Are you getting the best deal on your car insurance? According to the online price comparison service Go.Compare, some drivers may be paying significantly more than they realize due to hidden admin costs.

The Association of British Insurers (ABI) reported that the average cost of car insurance fell for the first time in two years, with motorists paying an average of £622 per year in June 2022. However, Tom Banks from Go.Compare warned that drivers should be aware of additional admin costs that can come with insurance policies.

It was found that 17 percent of car insurance companies in the UK charge a ‘set-up fee’ of over £60, with some fees reaching up to £350. Additionally, drivers may face cancellation fees of up to £180 and other expenses for changes, such as a cooling off fee of £125. In total, drivers could end up paying £805 more than they had planned for their car insurance.

To avoid being caught off guard by these fees, Tom recommended that motorists carefully read the terms and conditions of their policy, especially if they anticipate making changes like switching vehicles or addresses. Transparency is key, and insurers should clearly outline any administrative fees to customers.

In response to the report, the ABI emphasized that these fees should be transparent and in line with regulations. Insurers aim to provide the best service to their customers, but administrative costs may be necessary to cover the expenses of managing policies.

So, before you renew or purchase car insurance, make sure to do your research and understand all the potential costs involved. Being informed can help you avoid any surprises and ensure that you are getting the best deal possible.