Brits could save thousands of pounds after new rule changes mean you can’t be charged more money to renew your policy.
Many of us are forced to keep renewing our insurance every year and find that the company adds a little bit to our policy.
And that has resulted in many insurers losing their customers and many of us finding it cheaper.
That will change over the next year, however, as the Financial Conduct Authority has banned the more expensive insurance renewals.
Many companies increase prices for existing customers each year in what is known as “price walking”.
A watchdog survey that found millions of home and auto insurance customers would lose if they renewed with their current providers.
The FCA’s approach means that companies must offer existing customers a price that is no higher than what they would pay as new, reports Die Sonne.
The watchdog estimated the British could save £ 4.2 billion within 10 years of restructuring.
This could also mean that insurers no longer offer new customers “unsustainably cheap offers”, according to the FCA.
Insurers must also follow other new rules announced today.
Businesses need to make it easier for their customers to cancel automatic contract renewals.
You also need to submit data to the FCA so that they can regulate whether companies adhere to the new rules.
The new rules will be introduced from January 1, 2022.