Administration fees have become a major impediment to the cost of a policy once a driver has secured a cheap van insurance quote, according to a piece of research analysis by a leading company.
A spokesperson from the research analyst said that many drivers may not be aware of small print relating to their policies, with it often including terms and conditions that eventually push the cost of a policy far beyond that detailed in the initial cheap van insurance quote.
"There has been a noticeable and significant trend for motor insurance policies to charge administration fees for features that were in many cases previously standard services," said the spokesperson.
He added, "Many consumers will be unaware that they may actually be paying a setup fee or a renewal fee for their motor insurance. Such fees will be detailed in the accompanying documentation or in the renewal quote."
The piece of analysis revealed that there had been a dramatic rise in the cost of admin fees in the six years since 2004.
For example, of the kinds of companies that provide cheap van insurance quotes only 2% charged a set-up fee in 2004 compared to the 7% that do so today.
Another significant cost can be the so-called adjustment fee. In 2004 just 17.3% charged an adjustment fee; by 2010 this had rise to 67.1%.
A spokesperson from iVan said that administration fees are something commercial vehicle drivers tend to be canny about.
"Unlike, drivers of private vehicles," he said, "van drivers tend to have their business heads on when buying a policy."