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Still confused? |
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General Car Insurance |
Your Premium, Charges and FeesIts important when going on-line or ringing around for an insurance quote, to understand the various components of the premium quoted. The website or sales person should clearly explain the premium breakdown to you, if they do not, they are breaking industry regulations and you should be cautious of doing business with them.
The components of your insurance premium will include:
1. The actual premium charged by the insurance company. This is the cost to insure your specific risk profile. 2. Insurance Premium Tax (IPT). This is a flat 5% government tax on your insurance premium. 3. Fee’s and charges. This is a charge by the insurance company or broker for arranging your insurance. Usually this will be around £15 but may be higher. Direct insurers may not claim to add a fee, but often include it in the price of the premium. 4. Add-ons. These are additional insurance products that are ‘wrapped up’ in your insurance policy e.g. breakdown cover and uninsured loss recovery. These polices should be explained and offered to you separately. You do not have to purchase these products.
The issue of you being charged additional fee’s for arranging your insurance, need not be a contentious one as even with this fee added, the overall cost to you may still be lower than any other premium available.
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The Insurance Boffin E-mail: info@insuranceboffin.com Disclaimer: Any information, advert or link contained on this site does not amount to advice, suggestion or a recommendation in any manner or form. |
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The Insurance Boffin |
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