Martin Lewis has urged people to see if they can get cheaper auto or home insurance now to save hundreds of pounds – even if their renewal date is months away.
The Financial Conduct Authority is introducing new insurance rules on January 1st to end “price volatility” – where customers who renew every year go up their prices while new customers get the best deals.
It will be “channel-specific”, meaning an insurer will have to renew the same prices as new customers from the same website to all customers who have come for the first time via a website – for example GoCompare -.
Martin said on his ITV money show, “It will be the end of the cheap deal for switchers and the window to get them could be closed any minute.
“If you want to save hundreds, you must act now, before it may be too late.”
He added, “This is the end of price changing.
“There are six million non-changers paying up to £ 150 more.
“I still think that alternates can save in the future, but the savings will decrease radically for those who compare and switch every year.
“We could possibly see the first of these price changes within a month.
“Now is the opportunity to land your cheap switcher deal.
“I want to see if you can save even if your renewal is six months away.”
He said insurers would likely start changing pricing algorithms soon – meaning the cheapest deals could soon go away.
Those who have not claimed or reported a claim in that insurance year will receive a pro-rata refund for the remainder of the year, less any administration fees.
Martin said the perfect time to get new quotes for auto insurance is 23 days before renewal and 21 days for home insurance.
If you leave it to the last minute, he says insurers rate people at higher risk – while auto insurance rates could be 50% higher.
The Martin Lewis Money Show runs every Thursday at 8:30 p.m. on ITV.
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