Recent figures from the Association of British Insurers (ABI) reveal that the average cost of car insurance premiums decreased to £622 between April and June, down from £634 in the previous quarter. This marks the first decline in motor insurance premiums in two years.
Nevertheless, drivers may face up to £200 in additional administrative costs, such as renewal fees, cancellation charges, and sometimes opaque “set-up fees.”
These administrative fees have long inflated the overall cost of car insurance, and their increase in recent years has offset the drop in premium rates. Research by GoCompare.com for The Sun highlights a significant disparity in these charges among providers. Some companies impose up to £805 in admin fees, while others charge as little as £36.80.
Tom Banks, a spokesperson for Go.Compare, noted, “While we are observing a decline in car insurance costs this year, it remains a substantial expense for motorists.”
