Martin Lewis has warned people to check their home and auto insurance offers before January 1, 2022.
Starting next year, the Financial Conduct Authority (FCA) will introduce new rules that will mean insurance companies will no longer be able to charge for policy renewals.
The rules are aimed at ending the loyalty bonus where those who renew each year pay more than new customers who switch because they are offered cheap prices for it.
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And in response, home and car owners are being asked to look for cheaper deals now – even if their renewal isn’t coming soon.
Martin Lewis said on his MoneySupermarket website, “Even if your auto and home insurance does not need to be renewed, everyone should get quotes now because new rules can spike costs in just a few days.
“If you haven’t done all of the checks in the past few months, TRY NOW to see if a cheaper switch offer is available before the new rules go into effect in case prices go up after that, as you’ll get the policy that You have completed the award before the new rules apply. “
Martin then told people that the sweet spot to look for insurance renewals is 23 days because the renewals are cheaper then.
But you can still get a great deal even if your renewal isn’t coming anytime soon.
As a rule, you can terminate your existing insurance policy as long as you have not submitted or reported a claim in this insurance year.
Martin Lewis said January renewals are likely to get more expensive to make up for the money the companies will lose.
Martin added, “My best guess is that not only will companies lower renewal prices to match newbies – tariffs will be closer to the middle (as was the case in 2012, when insurers were excluded from gender-based price discrimination).
“This means that the savings from switching are likely to be relatively smaller.
“It was possible that insurers would have already made price changes because they knew it was coming. However, I’ve heard that many have waited until December to see what their competitors do – a strategy that will work first – especially as we near the end of the year. a time when they really want to win new customers. “
Martin also urged people to do a number of things to ensure they were getting the best deal possible:
- Check other comparison sites as they don’t list all insurers.
- Make sure you go to Direct Line as they are not listed on insurance comparison sites.
- See if a multicar policy can save you money when you have more than one car
- See if you can get cashback with your insurance
- If you want to stick with the company you are with, haggle with them.
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