As you may be aware, the Financial Conduct Authority (FCA) is introducing some new rules from 1st January 2022 that will mean insurance providers are unable to charge existing customers more for things like car and home insurance when their policies come up for renewal than new customers for like for like cover.
The comparison website CompareTheMarket.com did some research that revealed on average new policyholders who transferred their existing cover from one insurer to another paid £262 per annum less for insuring their vehicles. We are sure that you will agree that is a significant difference. With effect from the start of next year, insurers will not be able to charge more.
This sounds to be good news for consumers but what if insurance companies decide to increase how much they charge for both existing and new customers to try and make up some or all of the shortfall in premiums? It will be interesting to see what happens.
So, should you still continue to shop around to see if you can get a better deal from another insurer? Well, yes you should. Different insurance companies can potentially charge a different premium for the identical level of cover.
There are so many ways that you can get a selection of quotes to compare the cost for the same level of cover. For instance, you could get in touch with your bank, pop into your local high street insurance broker or go on the Internet and get one or more quotes from one or more price comparison websites. The later option has grown in popularity over the years as it is a relatively quick and simple process to compare competitive quotes from potentially dozens of insurance companies. Once you have made your decision as who to take out your motor insurance cover with you can usually complete the application process online or over the phone. Don’t forget to cancel your renewal with your existing insurer if you do move to another provider.