Watch out for hidden fees within insurance for young drivers, says Defaqto

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Watch out for hidden fees within insurance for young drivers, says Defaqto

Thu 16th Sep 2010

Research firm Defaqto has highlighted how many consumers may not be aware of what they are paying for when they take out a premium.

Insight analyst for general insurance at the organisation Mike Powell stated that people should check any documentation that comes with their policy.

He explained how information relating to any setup or renewal fees being charged will be in the paperwork sent out to customers.

"There has been a noticeable and significant trend for motor insurance policies to charge administration fees for features that were in many cases previously standard services," said Mr Powell.

According to research by Defaqto, the percentage of a motorist's premium price that goes towards the setup fee has increased from two per cent in 2004 to seven per cent this year.

This month, the firm revealed only one in eight motor insurance policies offers cover against road rage-related incidents, a feature popular with over-55s in the UK.

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