Normally, motorists see the final amount quoted and many of them may not care about the other charges included. If they are one off it may not matter as long as the policy is still competitive. However, some car insurance fees may be applicable each time you make changes to coverage or take another action like cancellation. They may be levied by insurers or brokers for their time. Depending on who adds them you may decide to take different action.
Vehicle insurance policies may have various fees like most other financial transactions. These could be for billing, credit facility, amendment and cancellation. In general they would be small amounts but some of them may still be annoying.
Brokerage Fees: Some underwriters allow policies to be packaged by a third party firm. This allows the automobile insurer reduce overheads and the firm to come up with tailor-made products for their client base. Such brokerage would be allowed to add remuneration on top of the rates set in agreement with the underwriters.
This arrangement would not raise any concern if the packaging cost is one off. But it would be a problem if handling charges apply each time they help motorists out. Finding out that there is a fee for changing the address would probably leave a bad taste in your mouth no matter who pockets the money. This could be a good reason to switch providers.
Being charged by a broker for contacting the insurer on your behalf may not be acceptable considering they get paid commissions. At least they need to be open and upfront about it. This does not mean that it is acceptable to put a disclosure of additional costs in small letters at the bottom of the page.
Amendment Charges: Quite a few auto insurers may absorb policy amendment expenses and may even withhold asking for additional premium if renewal is close. Policyholders should be able to make changes to cover as required without the worry of additional expenditure. However, there may be additional premium.
Some companies may do it the other way round. For example, they may include the installment interest in their quotes. But they may offer savings to customers who don’t need credit facility and pay upfront and in full. This amount can be as much as five percent. Some can use both interest and discount for full payment in the same time. Depending on the option you chose the premium costs would go up or down.
Cancellation Fees: Some companies may waive any penalties if a proper notice has been given before cancellation. These are contracts and breaking them can have small penalties. You should check them before making plans to switch to others. It may not matter that you are required to pay small amount if you are getting large discounts somewhere else.
It is important to check if there are additional levies for buying coverage through an intermediary in addition to the commissions they receive. As long as you know beforehand and accept the position you will have no further issues. Then, you would have choices as to buy it direct online or call them. It wouldn’t be surprising to see some of them are being cheeky and trying to slide a levy past you.
Intermediary services have important part in the sale of products. Some of them go far beyond the call of duty to help customers and others use every opportunity to make a little more money. That is why it is essential to work with ethical and reputable agents. Recommendations are a good way of finding reliable firms and should be sought where possible.
You can check possible additional payment and especially when you cannot make a choice between two similar ones. They will have to tell you if there are additional costs down the road. Even though they may not be large sums in most cases, it would be nice to know that each time you contact the agent they aren’t trying to make money from you.