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“They’re locked into annual car insurance contracts because there aren t viable alternatives and are then penalised if their circumstances change and they end a policy early.
Cuvva has urged road users to ask an insurer to list all the additional costs associated with a policy before they sign up.
It warns a policy may look like a good deal but added fees can add up to be a lot more expensive than first imagined.
It urged road users to consider more flexible car insurance policies which do not charge fixed cancellation fees.
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A flexible policy means drivers are not tied down to a fixed contract and can leave at shorter notice.