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Motorists face £333m admin bill

Published: 27/03/2008
Motorists face £333m admin bill
Motorists are paying £333 million in administration fees every year, research has shown.

Price comparison site uSwitch.com revealed that 14 million drivers are hit with additional charges.

The fees are levied for cancelling or amending policies, providing duplicate documents and other such services.

"Consumers need to know where they stand and the easiest way to do this is for the amount providers charge to be consistent across the insurance industry," said uSwitch.com insurance expert, Ashton Berkhauer.

"This would make it clearer for consumers and bring transparency to the market.

"Currently, making an adjustment to your policy can cost you from £0 to £25 and the price for cancelling a policy mid-term can be unlimited," he added.

According to uSwitch.com, there is no regulation in place to prevent insurance companies charging what they liked.

The price comparison site it calling for a review of the current regulation to address the situation.
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