Martin Lewis urges car owners to check car insurance before new rule introduced

Martin Lewis has urged car owners to review their insurance renewals before new rules are put in place.

It became known that the Financial Conduct Authority (FCA) is banning insurers from raising prices when existing customers renew their insurance.

The FCA has announced that insurers will be banned from charging existing customers until January, saving the British tons of cash.

And Martin Lewis said in his weekly newsletter that this could actually lead to higher prices in the coming months, reports the sun.

He said, “As the new regime starts in January, insurers will likely start changing algorithms sooner – there are even signs of it now.

“This likely means that the cheapest prices for those who compare and switch will quickly disappear.

“I therefore suggest that everyone looks as soon as possible to see if you can reduce costs by securing cheaper offers from switching providers.”

Even if your policy doesn’t need to be renewed, it might be worth switching now for cheaper rates, as long as the savings are big, added Martin.

Most insurers allow you to switch for a £ 50 cancellation fee and give you a pro-rated refund if you haven’t used the policy.

To find the cheapest car insurance for you, check out comparison sites such as Compare the Market and Go Compare, as well as with providers direct.

Cashback websites like TopCashback and Quidco are also a great way to make some extra cash when you switch to a new provider.

Analysis by MoneySavingExpert found that 23 days before renewal is the best time to get a new car insurance quote, and the cost could be cut in half.

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