The car scrappage scheme appears to be having some impact on new car production, however many car insurance companies are cashing in and charging high mid-term adjustment fees which is hitting those scrapping and swapping their car .
According to uSwitch.com, those getting involved in the car scrappage scheme are incurring significant ‘admin’ fees for making changes to their car insurance policies as they move their insurance from the old car to the new one.
Mark Monteiro, insurance expert at uSwitch.com, said: " Motorists must do their research when it comes to charges ‘hidden’ away in the terms and conditions of car insurance polices. They could potentially save themselves a significant amount of money if they opt for one of a number of providers who do not charge for making mid-term adjustments to policies."
Car insurance providers who currently do not charge for mid term adjustments include Marks and Spencer, HSBC Insurance, AIG, Endsleigh and NFU Mutual .




