Car insurers are still tricking customers out of extra cash by involving them into costlier policies, hiding fees and charges in small print and automatically adding unwanted extras. Fees and responsibilities are often hidden away and policy documents are generally far too long for customers to realistically challenge. A number of insurers such as AA and Allianz are still automatically signing customers up for highly commercial "add-on" products that are not clearly presented or explained. Add-ons are insurance products sold together with the primary policy. Some car insurers are believed to make a third of their profits from add-ons alone. Research by consumer group Fairer Finance found poor practice is still widespread in the sector. A third of insurers still organize pay-monthly policies for customers who have come from comparison websites when they have exactly asked to pay yearly.
Customers who do not carefully check that their choices have been taken are likely to end up paying considerably more for their cover. Firms charge more when premiums are paid over 12 months rather than annually in a lump sum. In the long run, it's in insurers' interest to ensure that their clients understand what they're buying. But too many insurers find it too hard to struggle the opportunity to try to make a quick extra buck.