Car Insurance Changes - UK

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GiveMeABreak
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Car Insurance Changes - UK

Post by GiveMeABreak »

For those not already aware, there are changes coming in from the 1st January 2022 regarding car insurance. The practice of 'price walking' is going to be banned. This is where insurance companies hike the insurance premium price up for existing customers for no good reason and rely on their customers renewing their premiums without quibbling or switching.

So the changes will prevent existing loyal customers from being charged more for renewing their premium than a new customer.

Nobody is sure how the market will react, but advice is if you have a car insurance policy that is due for renewal within the next 3-4 weeks, to check now for quotes before the end of December 2021. The ideal time to check for quotes is about 3 weeks before the renew date.

So this may mean that insurance prices rise overall from January as they level out the market, so there may be a push to get as many new customers on board now and hopefully keep them....

As some of you know I had some damage caused to my Aircross whilst I was parked in a supermarket car park and not present. I've just had my car back from repairs and its like new. I always protect my no claims discount, but was a little apprehensive about renewal as it will be classed as a 'fault claim' as there is no CCTV footage showing who actually caused the damage unfortunately. So I had to make a claim on my insurance for the repairs. My insurance is due at the end of December, so I ran the usual comparison site quotes and found that although the excess had raised from £200 to £300 on most quotes, the premium was about the same £190. My renewal a few days later came in from my existing insurance company and was only about £13 more to renew, but the excess had amazingly dropped from the £100 compulsory and £100 voluntary to £150 in total! So I've renewed with my existing company and am happy with that.

So if the car insurance companies can no longer offer cheaper car insurance to new customers than existing customers - it should in theory be better off for everyone, but that doesn't mean prices won't go up across the board from January. So maybe time to get a quote now if your car insurance is due before January 2022.
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myglaren
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Re: Car Insurance Changes - UK

Post by myglaren »

Had an email from LV about that a week ago.
Mine isn't due until July, or thereabouts.
Applies to home insurance too.
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Timmo
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Re: Car Insurance Changes - UK

Post by Timmo »

Isn't it somewhat sad that a regulation has to be passed to stop companies doing this, there has been absolutely no benefit from being a loyal customer for a long long time now, 20+ years, even to the point the same insurance company could not match a renewal cost to their own Internet price for a new policy! Absurd!
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Re: Car Insurance Changes - UK

Post by GiveMeABreak »

It's going to be a bit of a 2-sided coin here I think:

1) Will this stifle competition and stagnate the market? If existing customers aren't going to be charged more than new customers - then I suspect the premiums will rise for everyone.

2) I can see the benefit for those that never bother switching though - as they don't have to do anything except renew in the knowledge their premiums won't unjustifiably rise.

3) I can see the market becoming more about what you get for your money now rather than about the prices.

I can see why the FCA want changes - take the AA and their notoriously criticised and almost universally condemned breakdown cover tactics:

They lure you in with their discounted annual fee, then guaranteed they often double or triple the fee for the following year in the renewal letter! One phone call to them more or less always results in the previous years premium being restored or a vastly reduced renewal quote. This sort of practice is a joke and I agree this price gouging should be outlawed. I played this game with them for years - but I had to ring them every year. I feel for the thousands of the mostly older generation that likely renew without question because they are too embarrassed or too shy to negotiate.
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Re: Car Insurance Changes - UK

Post by Gibbo2286 »

My price grumble now is regarding the broadband companies, they are slipping into the small print a note that says something like: "Price will increase by CPI + 3.9% each April."
So not satisfied with inflation but adding a chunk on top as well.
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GiveMeABreak
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Re: Car Insurance Changes - UK

Post by GiveMeABreak »

Yes, I agree that's criminal and I hope they get looked at next. I appreciate we need to have investment to get fibre out across the country - but that sort of price increase is not sustainable for a lot of people either. That also affects EE and Plusnet too as they are both owned by BT. At least with mobile you can vote and jump ship to another provider - but for many, like us, we have no other option as it is only BT who supply the fibre to our house directly.

I hope the competition watchdog factors this in sometime in the future, or it will be back to loin cloths, bean cans with string and smoke signals.
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mickthemaverick
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Re: Car Insurance Changes - UK

Post by mickthemaverick »

GiveMeABreak wrote:
06 Dec 2021, 19:00
............ or it will be back to loin cloths, bean cans with string and smoke signals.
Now there's a plan!! :-D
Hell Razor5543
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Re: Car Insurance Changes - UK

Post by Hell Razor5543 »

Well, that was useful. My insurance renewal was about £270 less than last year, and that was without shopping around.
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GiveMeABreak
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Re: Car Insurance Changes - UK

Post by GiveMeABreak »

You were probably overcharged last year!

Crikey - I pay about two thirds of your 'savings' for my fully comp insurance with NCD claims protection!