Motor Insurance customers have recently found that some of the UK’s biggest insurers have introduced exorbitant administration fees for simple things like changing of a name or address or a duplicate copy of a policy. The AA for instance is charging £25 for the aforementioned service, while Hastings makes no charge.
Cancellation fees are another area where insurers are cashing in, where some companies have no upper limit set, and are basing the fee on the outstanding term of insurance.
Three months ago the regulators of the insurance industry FSA removed a section of the Insurance Code Of Business, claiming that it serves no purpose as it has never needed to investigate a company for excessive charges.
Now the regulators are being called upon to rectify the situation, by reinstating the section of regulation protecting insurance customers from excessive charges. It is estimated that the current lack of regulation is costing the paying public a cool £333million a year.
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