Insurance Pitfalls that Need to be Avoided
Motorists in the UK have been warned to heed to the concealed perils that come with renewal of the car insurance policies excusing which could pose a severe blow to their financial status. This has become particularly more important given that AA confirmed a 40% increase in the car insurance premiums. It should also be taken care that any simultaneous change in the policies may also bring forth inevitable cost implications. Some of the mentioned fees are often scandalous, which is why the insurance holders should take pertinent care before you compare car insurance, during renewal of the policy as well as while making a claim. Following are some of the policy pitfalls that should be given heed:
Renewal Fees
Most of the insurers have resorted to charging admin fees for any of the minute changes in the existing policy. The numbers have been constantly growing and have risen to £55 in the current pretext.
Debt Fees
If you have been paying your insurance premiums as monthly installments, it is a possibility that your insurer would be charging a debt fee for the same. The value may vary between 8-11% and most of the insurers do not mention this fee structure. The debt fees may peak reaching to 28.6%.
Cancellation Fees
Furthermore, try not to cancel your policy before its expiry or during midterm. It is seen that within UK, most of the insurance companies have been charging cancellation fees of about £85. Clubbed with the administration fee, the cancellation fee stands out as one of the prime culprits in the insurance business.
Duplicate Policy
Most of the times, you would have to have duplicate policy documents in cases where your insurance certificate is stolen, lost or damaged. Insurers have been charging an average fee of £17.49 for the same. However, the experts in the insurance sector believe that it may reach £30.
Higher Excess
Most of the insurance policies go by the myth that the bigger is your insurance excess; the lower is your insurance premium. However, the myth continues to remain a myth. Even if you wish to include an excess, make sure that it is financially suitable.
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