Many automobile insurance corporations could not adhere to the brand new FCA guidelines that might be rolled out in days – Every day Specific
New rules from January 1, 2022 require insurers that canceling a policy is just as easy as taking out one. The new regulations also require auto insurers to stop charging existing customers more than new customers when they renew their policies.
However, a new investigation by insurance company Rnwl found that it was still almost impossible to cancel contracts with multiple companies.
An analysis by Rnwl found that around 31 percent of insurance companies, including some well-known names, found it difficult to cancel insurance.
The data come from telephone and internet research that Rnwl carried out at 51 insurers.
Goncalo de Vasconcelos, founder and CEO of Rnwl, confirmed that the cost was still high for those looking to renew their contract.
READ MORE: Martin Lewis urges "get a quote now" before a "massive rule change" takes place
A previous study by Compare the Market found that auto-renew could result in people paying more than £ 450 as a loyalty penalty.
Half of the households surveyed stated that they would experience a price increase if they stayed with an existing provider.
They warned that prices rose by around £ 81 on average if you stayed with the same provider.
The FCA has claimed the new rules would save consumers around £ 4.2 billion in 10 years.
Martin Lewis had previously "urgently warned" road users about the changes.
On his Martin Lewis Money Show, he told drivers they should consider switching soon in order to get the best deals possible.
He said, “From that date on, insurers will have to charge existing customers the same as new customers.
“Existing customers are currently paying significantly more.
“I know a lot of people will cheer that.
"But in the short term, switch prices are likely to rise."