Motorists solely have per week to get a high auto insurance deal earlier than a serious change comes … – The Solar
DRIVERS only have one week left to get deals on their car insurance before a major change in rules occurs.
From January, insurance companies will be prohibited from charging existing customers more than new customers.
Motorists should now look for cheaper insurance dealsPhoto credit: Getty
Loyal customers who stay with an insurer often pay more for their policy – the so-called loyalty penalty.
Motorists can usually find a better deal when it is time to renew their insurance by browsing or even haggling with their current provider.
Renewal offers are often far higher than those for new customers – sometimes hundreds of pounds more.
But financial regulators announced new rules earlier this year to prevent this from happening – and they're due to come into effect on January 1, 2022.
The Financial Conduct Authority (FCA) estimates that restructuring could save the British billions over the next 10 years.
It is warned that the ban on charging existing customers more than new customers could lead to price increases for everyone.
And motorists have been advised to check NOW if they could get a better deal when their policy expires this month.
You will usually receive a letter from your insurance company telling you when your policy needs to be renewed – and how much you will be charged.
Usually this renews automatically unless you opt out, and this can be done at a higher cost.
However, you do not have to accept this.
Using comparison websites, you can get a quote from other insurers and see if you can get a better deal.
It is best to use a few different websites as they may not list all insurance companies.
Some insurance companies, like Direct Line, aren't listed on comparison sites either, but you can get a quote directly.
You should check that you are getting the same coverage as your current policy.
Or if circumstances have changed make sure to include this in an updated listing.
You can use the offers to haggle for a similar price with your current provider – or get them to beat them.
If it doesn't, you can contact a new provider who has a better deal.
According to Compare The Market, buying car insurance can save you £ 262 annually.
Renewing your insurance exactly 20 days before it expires can save you an average of £ 306.
These car checks can add hundreds of pounds to the value of your vehicle.
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