Martin Lewis Points "Pressing Warning" On Auto And Residence Insurance – Basingstoke Gazette
On his ITV show, the money-saving expert warned people about being aware of a radical change in insurance rules on January 1st.
New rules are set to be introduced by the Financial Conduct Authority to end loyalty rewards.
The change should balance out prices in the long run, but it may result in a short-term spike for those looking to switch insurance providers.
Urgent warning from Martin Lewis on auto and home insurance
On the Martin Lewis Money Show, Mr. Lewis stated, “We talked about it on the show, but now is really running out of time.
“This is an urgent warning about auto and home insurance. When the champagne corks pop on January 1st, there will be a big change in the rules.
“The insurance rules are changing radically. It's the end of the loyalty bonus.
“From this date on, insurers will have to charge existing customers just as much as new customers. Existing customers are currently paying significantly more. "
That might be a good thing in the long run, but Martin Lewis explained why this could lead to short-term price hikes.
He added, “I know a lot of you will be cheering this, and it's generally a good thing, but in the short term, switch prices are likely to go up.
“Do not expect the prices of existing customers to drop to the level of new customers.
"They'll likely meet somewhere in the middle, so switch prices will go up."
Martin Lewis' top auto and home insurance tips
Martin Lewis posted his top tips for renewing auto and home insurance on MoneySavingExpert.com.
- Check at least two comparison pages
- Compare that to Direct Line and other offer comparison sites that you are missing out on
- See if a multicar policy is cheaper
- Check whether the fully comprehensive insurance is cheaper than the liability insurance and whether the addition of a responsible additional driver saves costs
- Check if you can get cashback
- If you want to stay where you haggle