Increasing Admin Fees Stop Insurance Premiums From Rising, It’s A Con

Wednesday, 13. October 2010

Insurance premiums are being secretly increased by the application of admin fees according to research firm Defaqto. In 2004 the admin charge on an insurance policy was 2% of premium but that has now increased to 7% in 2010. The insurance industry, like the finance industry, has realised that people ignore the terms and conditions attached to contracts and simply focus on the lowest rate so they use stealth measures to increase the return without touching the premiums. Mike Powell, insurance analyst at Defaqto said, “There has been a significant trend for motor insurance policies to charge admin fees for features that were previously standard services in many cases.” Have you been caught out with these extra fees? If so let me know? By Graham Hill