Auto Insurance Changes: Many Providers May Fail To Comply With New FCA Rules Days Before Launch
New rules as of January 1, 2022 will require insurers to make it as easy to cancel a policy as to purchase a policy. The new rules also force auto insurance companies to stop charging existing customers more than new ones when they renew their policies.
However, new research from insurance provider Rnwl revealed that it was still nearly impossible to cancel deals from multiple companies.
Rnwl’s analysis found that it was difficult to cancel insurance with around 31% of insurance companies, including some familiar names.
The data comes from telephone and Internet research carried out by Rnwl with 51 insurers.
Rnwl founder and CEO Goncalo de Vasconcelos confirmed that costs were also still high for those looking to renew their deal.
READ MORE: Martin Lewis urges ‘get quote now’ before ‘massive rule change’
A study by Compare the Market previously found that people could pay over Â£ 450 as a loyalty penalty when auto-renewing.
Half of the households surveyed said they saw prices increase when they stayed with an existing supplier.
They warned on average that prices increased by around Â£ 81 when staying with the same supplier.
The FCA has claimed the new rules will save consumers around Â£ 4.2 billion over 10 years.
Martin Lewis previously issued an “urgent warning” to road users about the changes.
Speaking on his Martin Lewis Money Show, he told drivers they should consider switching soon to get the best deals possible.
He said: âFrom that date on, insurers have to basically bill existing customers at the same price as new customers.
âCurrently, existing customers often pay a lot more.
âI know there will be a lot of people applauding this.
âBut in the short term, switch prices are likely to go up. “