Will Thomas, head of motor insurance at Confused.com, comments: “While
recalculating a policyholder’s risk may lead to an understandable increase in premium, some of the fees seem scandalously out of proportion for the amount of work required to update policy information. Administration work has been slashed with the advent of new technology making a lot of processes online and automated, but the administration costs have not fallen to reflect this. If a customer suspect they’ll need to make any significant change, they should check the terms and conditions, before taking out the cover. Reading the small print is always advisable as it can prevent people from having a nasty surprise when they come to change their policy, renew or claim.
When it comes to calling time on a policy people need to be aware of the fees applied before making a decision. Terminating an insurance contract half way through can be costly with providers taking a variety of approaches when it comes to dealing with the rejection of cancellation before renewal”