New 2022 car insurance rules are ‘huge shift’ and the ‘death knell’ for loyalty penalties
Martin Lewis warns viewers about drastic car insurance changes
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Ryan Fulthorpe, Go Compare’s car insurance spokesman, said the end of higher fees for current customers was “long-awaited” by many. However, he has urged road users to continue to compare quotes against other insurers even if the savings may not be as competitive as they used to be.
The new rules will mean insurers cannot artificially hike prices for existing customers.
Instead, firms must offer similar prices to new and existing customers at all times.
The Financial Conduct Authority (FCA) has previously warned firms are unlikely to offer “unsustainably low-priced deals” when the new rules come into effect.
However, Mr Fulthorpe has warned there will still be “hundreds of other insurance companies” who will provide “more competitive quotes”.
Mr Fulthorpe said: “This is a huge shift for the insurance industry and ultimately signals the long-awaited death knell of the ‘loyalty penalty’.
“But this doesn’t mean that customers should rest on their laurels when their renewal arrives.
“In fact, now more than ever, car and home insurance customers should be looking to compare their renewal price against the rest of the market.
“It’s important to remember that a renewal price will only be from one insurer, offering that particular deal.
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“There are still hundreds of other insurance companies who will all provide different and potentially more competitive quotes.
“So, while your current insurance company could offer you one price, it’s still important to shop around and see the other prices that are out there.
“If a customer’s circumstances have changed since their last renewal, such as making a claim, changing their vehicle or moving house, this must not be different the price offered to new customers.”
Go Compare has previously warned drivers were losing around £1.2billion worth of savings through greedy price walking strategies.
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