Car Insurers are charging ‘admin’ fees that amount to as much as £25 for completing simple paperwork. Some of the basic tasks that warrant a charge include a change of address for a car owner whilst they are still covered by an insurance policy. It is estimated that these hidden charges are affecting up to 14 million car owners each year.

It has been claimed that the main culprits in this administration charge practice are Budget Insurance and More Than.

A representative of AA claimed that his company does not impose fees for a change of address during the term of an insurance policy but customers can expect a charge of £25 for major changes such as the inclusion of an extra driver.

Budget Insurance insisted that potential charges are brought to its customers’ attention and this type of administrative charge is no different to other companies in the insurance field.

Industry experts have warned motorists to carry out a careful inspection of the terms and conditions associated with these policies.

Some motorists have expressed dismay at the imposition of what they consider to be a hefty charge for the writing of a few lines or the typing of data onto a computer screen.