Car insurers in the UK are raking in millions of pounds from unwitting customers who have no idea they are being charged for simple changes to their policy.

The so-called ‘stealth charges’ come at a time when insurers are keen to remind you that every single aspect of your driving life must be recorded by your insurer, including any changes to address, the car you drive, or who drives it. While you could receive huge penalties or even invalidate your insurance for not telling your insurer, it appears we are now penalised financially even when we do tell them.

The average ‘stealth charge’ for making a change to your policy is £28.25 according to a study by GoCompare. The admin fees which are hidden away in the small print of policies are rising more than two times as fast as the rate of inflation.

Lee Griffin, founder and chief executive at GoCompare, said: “The car insurance market is highly competitive, so rather than incorporating the costs of certain admin tasks into the basic premium, some insurers make other charges.

“This helps keep premiums down by ensuring that only the policyholders who change or cancel their policy, for example, pay for the additional work required to administer their policy.

“Our analysis shows that since 2012, the cost of some admin jobs has soared. And, the enormous range in costs between policies for the same tasks is inexplicable.

“Take adjustment fees, for example, depending on the policy you could either pay £7.50 or £70.50 to make an amendment to a policy.

“Insurers should be upfront about any admin fees they charge. These should be clearly set-out in their terms and conditions, so drivers are aware of the full costs before signing-up to a policy.”

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