Many car insurance firms may not comply with new FCA rules launching in days
Martin Lewis warns viewers about drastic car insurance changes
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New rules from January 1, 2022 will require insurers to make it as easy to cancel a policy as it is to buy one. The new rules also require car insurance firms to stop charging existing customers more than new ones when they renew their policies.
However, new research from insurance provider Rnwl found it was still almost impossible to cancel agreements at several firms.
Analysis by Rnwl found it was hard to cancel insurance with around 31 percent of insurance firms, including some household names.
The data comes from phone and internet research carried out by Rnwl amongst 51 insurers.
Goncalo de Vasconcelos, founder and CEO of Rnwl, confirmed costs were also still high for those looking to renew their agreement.
When dealing with his insurance, he was asked to increase his payments by a massive 66 percent.
He said: “The lengths some motor insurers will go to prevent customers moving is not acceptable.
“When I tried to stop my own car insurance auto-renewal the only option I was given was to accept the 66 percent increase in cost.
“To stop auto-renewal I had to find a phone number, buried deeply in the site, then call the insurer and make seven menu selections before I could cancel and save some money.”
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Research by Compare the Market has previously found people could pay more than £450 as a loyalty penalty when auto-renewing.
Half of households surveyed said they saw prices increase when sticking with an existing provider.
They warned on average, prices went up by around £81 when sticking with the same provider.
The FCA has claimed the new rules would save consumers around £4.2billion over 10 years.
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