Tens of millions are suffering from hovering auto and home insurance payments in TWO weeks – how you can keep away from it … – The Solar

MILLION households could see their auto and home insurance bills grow in two weeks' time under a regulatory reorganization.

In the new year, due to the rule change, insurers are no longer allowed to charge existing customers who extend their policy more than new customer contracts.

1

Insurance premiums rose for half of the households if they stayed with their existing providerCredit: Alamy

The Financial Conduct Authority announced in May this year the restructuring aimed at combating the "loyalty penalty" that is causing companies to offer better deals to new customers.

This penalty will result in existing customers paying more for their deal.

The new rules will go into effect January 1, 2022 – and the FCA estimates the changes could save the British £ 4.2 billion in 10 years.

While it will be good news for old customers whose policies are auto-renewing, some experts have warned that it could hit new customers looking for a better deal.

In the search for a better policy, new customers receive the same offer as old customers who have extended their policy.

But Sarah Coles, Hargreaves Lansdown's senior personal finance analyst, said, "This is good news for those who stay with one provider, but it likely means the end of very cheap deals for those willing to move on."

However, she added that changing the rules will prevent insurers from raising prices every year after seducing you with a bargain deal.

There are no loyalty rewards with insurance companies.

You can end up paying hundreds of pounds more for your home and auto insurance when you have your policy automatically renewed with your existing provider.

Comparison website Compare The Market found that people risk paying more than £ 450 if they are caught in the insurers' loyalty trap.

However, it found that new customers who switched providers paid an average of £ 262 less for car insurance and £ 113 less for home insurance than those who stayed – a total saving of £ 456.

This is how you avoid paying more

To ensure you are getting the best possible deal on your insurance policies, there are four tips we should follow to help you out.

Switch at the right time

There is a trick to getting the best guidelines – and often it's all about timing.

You won't want to wait until your renewal date to look for a better price as you may have to pay hundreds of pounds of ore.

Your insurer will usually send you a letter three to four weeks before the end of the contract to offer you a new price.

At this point, you'll want to shop around, compare prices, and switch if there's something better – don't leave it until the last minute.

A comparison research website Compare The Market suggests insurance policies are £ 319 cheaper if you switch three weeks before the renewal date, compared to switching on the day a policy ends.

Optimize your job title

Just changing the wording of your job title can have a big impact on the price.

This is because insurers view certain jobs as riskier than others – which means they are more likely to have to pay for damages.

GoCompare analysis found that a chef was listed at £ 659.63 for car insurance, while a kitchen worker was only £ 520.10 – a difference of nearly £ 140.

However, it is important that you don't lie about your job – doing so could invalidate your policy.

Compare prices

If you're looking for building and contents insurance for your home, it could save you £ 113 annually, according to Compare The Market.

To compare household insurance, you need information such as the address, the value of the property, the security features you have installed, the value of your property and the history of the claim.

Drivers are required to provide vehicle details about where your car is kept when comparing offers, as well as your age, occupation, driving history and track record.

You can save up to £ 262 by searching for auto insurance and comparing Compare The Market claims.

Haggling over a deal

Once you've found a cheaper offer, it's worth calling your current insurer to see if they can beat the offer and keep you as a customer.

If your insurer can't offer you a better deal, consider switching to someone else.

It could mean that you can stay with your insurer without the hassle of switching – and save money too.

Bloke shares an ingenious hack for de-icing your car and saving you tons of time

We pay for your stories!

Do you have a story for The Sun Money team?

Comments are closed.