Apparently, car insurance companies are permitted to charge an administration fee when you make an amendment to your policy. This could be due to one or more changes in your circumstances such as if you informed them that you had changed your job or should you add someone as an additional driver.
Last year, Which? undertook some research into administration fees when it looked at 44 companies that provided car insurance. It found that there was quite a difference being charged between providers but it also discovered that some insurers did not charge a fee if someone made an amendment to their policy.
Which? found that as much as £75 was being charged by some insurers should a policyholder wish to cancel a motor insurance policy. The average fee was £49.55 although there were a couple of insurers that did not make such a charge.
It was interesting to find that there was one insurance company that made a charge of £35 should someone change their policy due to changing their job, address or name with the average fee being charged for such an amendment being £22.79. There were a number of insurers that did not make a charge for such changes to a policy.
There are a number of insurers that charge for sending out a copy of the policy or a replacement insurance certificate. The average charge made for this was £14 with a couple of insurers charging £30.
If you are faced with having to make an amendment to either your standard or classic car insurance policy for which the insurer intends to make a charge then one of the options available to you is to try to negotiate with the company to see if they will either reduce the fee or even waive it. After all, it costs you nothing to ask the question.