The hidden costs of changing your car insurance policy

According to Which? Money research, seven-in-ten car insurance providers impose administration charges on policyholders for making small changes to their policies.

YourCover insurance, the recently launched online motor insurer, is one provider who does not make a charge and also has a very competitive APR for policyholders wishing to pay by instalments.

Extensive customer research carried out by YourCover insurance even before its launch revealed that consumers expect to be able to make changes to their policy without incurring administration charges imposed by their insurance provider. YourCover insurance listened and does not charge for changes made during the term of the policy.

Using information provided by the independent financial research company, Defaqto, YourCover insurance can report that across a basket of well known motor insurance brands, the average adjustment fee charged to policyholders for making even the simplest of changes to a policy is £19.00! This rises to as high as £35.00 with one insurance brand.

In addition to a ‘no admin charge’ promise, YourCover insurance also has one of the lowest APR’s for customers choosing to pay their premium by instalments. YourCover insurance charges a typical APR of 16.8%. Again, using the same Defaqto research, the average across other leading providers was 24.0%, rising to as much as 29.5% with one leading insurance company brand.

Neil Brettell, Director, Speciality and Direct said:

“In these difficult financial times, customers don’t just want competitive premiums, they also don’t want to pay for making simple changes to their policies. Often, customers circumstances change and we don’t make any charge for mid - term adjustments. Additionally, our typical APR for paying your premium by instalments is one of the lowest in the market place.”