New auto insurance rules to end ‘loyalty tax’ overload

Watch Free Movies and TV shows Apps

πŸŽ¬πŸ“Ί Free Movies and Free TV Shows! 🎭🎬


img

Stop new rules car insurers charging existing customers more for coverage than new customers.

It is thought that millions of drivers pay more than necessary for their insurance because they automatically renew their policy without having to look around. In many cases, the renewal quote is more expensive than the price they previously paid and more than they would be charged as a new customer.

Watch Free Movies and TV shows Apps

πŸŽ¬πŸ“Ί Free Movies and Free TV Shows! 🎭🎬

This so-called price-walking or loyalty tax would collectively cost British drivers hundreds of millions of pounds a year.

The new rules must ensure that drivers do not pay more than is necessary

However, under new guidelines from the Financial Conduct Authority (FCA), insurers are not allowed to charge a customer more for renewal than they would pay as a new customer.

The FCA says the move will not only stop companies’ price increases, but also end unsustainably low-priced deals used to lure new customers.

read more

read more

Drivers urged to beware of this post-lockdown insurance scam

The change, which comes into effect in January 2022, will apply to car and home insurers and the FCA estimates it will save customers Β£4.2 billion over the next 10 years. At the same time, insurers will have to make it easier for customers to cancel automatic renewals of their policies.

Many drivers end up paying more than they need to when they automatically renew their policypolis

Sheldon Mills, executive director of consumers and competition at the FCA, said: “These measures will end the very high prices paid by many loyal customers. Consumers can still benefit from shopping around or negotiating with their current provider, but will no longer be charged on renewal just because they are an existing customer.

“We will be monitoring closely to see how the market develops in the future and to ensure that companies continue to deliver fairer value to consumers.”

Gareth Shaw, head of Money at Which?, said the changes were long overdue. He noted: “Insurers have been using sharp pricing tactics for far too long to lure customers before hitting them with eye-watering price hikes and exorbitant premiums, so it’s good that action is finally being taken to end these unfair practices.

“More transparency is still needed about the factors insurance companies use to set prices, and the FCA should conduct further investigation to see if there are other practices that companies should not use.”

Louise O’Shea, CEO of Confused.com, said the move was a “turning point” for the industry. She added: β€œThings are about to get very competitive – insurers will compete to win new contracts, so there will be a better price for every customer.”

Watch Free Movies and TV shows Apps

πŸŽ¬πŸ“Ί Free Movies and Free TV Shows! 🎭🎬

This div height required for enabling the sticky sidebar