Martin Lewis warns viewers about drastic car insurance changes
We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
On January 1, 2022, rules were changed which banned “loyalty penalties” for insurance quotes for both car and home cover. Insurers are now banned from quoting their existing customers a higher price for renewing their insurance than they’d pay if they were a new customer.
This is expected to lead to the end of the widespread practice of “price walking”, in which insurers increase premiums each year for their long-term customers.
The Financial Conduct Authority said insurers will be required to offer renewing customers a price that is no higher than they would pay as a newer customer and is likely to end offers of unsustainably low-priced deals.
It estimated that the new measures will save consumers £4.2billion over 10 years, by removing the loyalty penalty and “making the market work better”.
This comes as millions of Britons are concerned about the increase in price for many other household bills, most notably energy bills.
Greg Wilson, founder of Quotezone.co.uk, has warned drivers of a number of things they should do to avoid paying more on car insurance.
He said: “If you have changed your driving habits significantly – for example, if you are now working from home instead of driving to the office – tell your insurer as you may be able to reduce your premium.
“However, do allow for unexpected trips and be aware that deliberately underestimating your mileage could invalidate your insurance.
“At a time when many are facing steep hikes in essential spending, there are still ways to substantially reduce motoring insurance costs with little effort, so it’s worth reviewing insurance policies and finding where savings could be made.”
Caravan and motorhome owners could be hit with daily charges [SHOCKING]
Motorists urged to prevent windscreen frost with household objects [INSIGHT]
New car tax changes slammed with motorway protest as drivers fume [WARNING]
Car insurance companies will often ask for an estimate of drivers’ annual mileage, with the costs rising in incremental bands.
This means those who are driving more often will need to pay more, and with some drivers now working from home more often, more savings may be available.
Naturally, the safer drivers are with their car, the better chance they have of saving their money, as Quotezone found that motorists who park on driveways rather than on the road save over £140 on average every year.
This also extends to safe driving, with driving licence penalty points affecting car insurance premiums massively.
Save 10% on your MOT
It’s Kwik Fits’ Midsommer Madness sale and you can take 10% off your MOT Test with the UK’s #1 MOT tester – just click the link to book online.
Source: Read Full Article