Woman using her laptop

New rules make renewing insurance cheaper

The new year has brought new rules for insurance companies – which could make renewing cheaper for us.

Until now, firms have been allowed to drive up the cost if we renew automatically, meaning that we could be left paying much more than new customers.

Unless we were tech-savvy and knew our way around the internet, there’s a good chance we’d been paying more than the average price for sticking with the same insurer.

But now they’ve been banned from quoting a higher price to people who are renewing than to new customers.

It was known as price walking and often meant we were lured in with cheap quotes which then increased year on year. 

The Financial Conduct Authority, which brought in the new rules, said it would save unsuspecting customers a whopping £4.2bn over the next 10 years as renewing insurance becomes cheaper.

FCA executive director Sheldon Mills said: “Insurers can no longer penalise consumers who stay with them. You can still shop around and negotiate a better deal, but you won’t have to switch just to avoid being charged a loyalty premium.”

The rules will also make it easier for us to cancel automatic renewals, and firms will have to show their policies offer value for money.

GETTING INSURANCE

If we don’t have home contents or car insurance, read our guide on why you may want to get cover.

Take a look at our guide to using comparison sites, and click here for a list of some of the best websites to use.

For a free online crash course to using the internet visit Learn My Way.

Quids in! Top Tip: If you don’t have access to a laptop or tablet you may be eligible for a free one from your local authority or social landlord.

Image: Andrea Piacquadio/Pexels

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