MARTIN Lewis is urging drivers to check their car insurance ahead of a rule change on renewal policies.
From January next year, insurers will be banned from charging existing customers more than new ones.
1
The new measures by the Financial Conduct Authority (FCA) are an aim to tackle the so-called loyalty premium.
The financial regulator estimates Brits could save £4.2billion over 10 years on their car and home insurance because of the shake-up.
However, Martin Lewis warned in his weekly MoneySavingExpert newsletter that it could actually lead to higher prices in the coming months.
He said: “While the new regime starts in January, insurers will likely start to shift algorithms before – there are even signs now.
How to make sure you’re not being penalised for being loyal
THE best way to beat the loyalty premium is to check if you can switch and save.
These are some of the best websites to use to find a better deal on your provider.
Remember though, if you are thinking about switching before your term is up then you could face an early exit fee.
“This likely means the cheapest prices will disappear rapidly for those who compare and switch.
“So I suggest everyone check as soon as possible to see if you can cut costs by grabbing cheaper switchers’ deals.”
Even if your policy isn’t up for renewal, it could be worth switching now to lock in cheaper prices, as long as the savings are big, Martin added.
Most insurers let you switch for a £50 cancellation fee and will give you a pro-rata refund, if you haven’t claimed on the policy.
To find the cheapest car insurance for you, check comparison sites such as Compare the Market and Go Compare as well as with providers directly.
Cashback websites including TopCashback and Quidco are also a great way to earn some extra money if you’re moving to a new provider.
Analysis by MoneySavingExpert has found that 23 days ahead of renewal is the best time to get a new car insurance quote, and it could halve costs.
We’ve rounded up nine ways to save on your car insurance, which can cut your bill by up to £2,800 a year.
HOUSE THAT?!
7ft wide home on sale for £150k is so tiny it’s barely visible from the road
SUN SAVERS
Get your hands on inflatables that won’t rinse your wallet with these top deals
MONEY SMART
Thrifty couple now debt-free after paying off their mortgage 28 years early
ALDI DEALS
Aldi’s Specialbuys include a BBQ and a pizza oven – and you can pre-order today
NUG LIFE
We test supermarket chicken nuggets including Aldi and M&S to see which are best
LOUNGING ABOUT
Bargain hunter spots Tesco’s rattan furniture for £120 – cheaper than Argos
It comes as homeowners are facing higher insurance premiums than at any time in the past seven years due to the Covid crisis.
While car insurers faced pressure last year to refund motorists unable to use their cars during lockdown, paying for policies they didn’t need.
Motorists are set to save up to £35 a year on their car insurance premiums as new rules for whiplash claims came into force in May.
And the Oscar for worst car insurance scam goes to…
