In amongst all the bad news and pessimism, there is at least, a little potential good news for customers who keep getting stung on their insurance renewals…
The Financial Conduct Authority (FCA), the body that oversees the insurance industry amongst other things, is working to outlaw what is referred to as “price walking”.
This is what happens when an insurer increases your premium every year when you renew, even though the policy would be cheaper if you came to them for the first time.
Many of us will be allowing this to happen without even knowing.
How many times, for example, have you looked at your home and contents insurance letter, thought it looked more or less the same as last time, and let it renew.
In reality, if you had questioned it, sought a quote from another provider (or even the same insurer!) you may well have found the same cover cheaper.
The FCA believes that by stopping this sort of ‘price walking’ people will get a better deal, save money and be more confident in the insurance market.
In future, insurers will have to demonstrate they are pricing policies fairly and make it clearer how customers can cancel auto-renewals.
This is all good news, as we all want people to get the best deal on their insurance. It might also stop people using comparison websites, because it should ease the need to keep shopping around for the best deal – irrespective of the cover being offered.
The best advice is to get the best advice…
As with all important financial decisions, it is best to get expert advice before you take out an insurance policy. You need to make sure you are getting the right cover for your needs and paying the right price.
For a free, no-obligation consultation on any insurance or mortgage issues, please call me on 07767 692 653. Or, if you prefer, you can contact me by email at email@example.com
For more details on the services I offer please visit www.markgrayshan.co.uk
In the meantime, stay safe.