UK Motorists Could be Spending Hundreds on Their Car Insurance Unnecessarily25 September 2020
Following rumours of a ‘radical reform’ by the Financial Conduct Authority (FCA), UK motorists are set to be hundreds of pounds better off as a result of having to pay less for their car insurance.
Currently, car insurance providers are renowned for charging existing customers far more than a like-for-like policy than ‘new’ customers.
However, under the proposed ‘shake up’ by the FCA – old and new customers must be charged the same price.
If this change comes into place as proposed, UK motorists are set to save a rumoured £3.7bn over the next 10 years.
It’s believed that there are more than 10million car and home policies in place by people who have been with the same provider over five years, which means they are set to save a considerable amount of money under the proposed reform.
In real terms, if the changes come into place it means that the insurance providers can set the new price to what every they feel is reasonable, but they cannot gradually increase that cost to ‘loyal’ customers, other than for changes in people’s risk.
The proposal is set to be discussed in January 2021 so keep your eye on our blog for further updates.
To get everything you need included with your new lease, consider a car leasing with insurance package.