Auto insurance: expert shares tips on how to save money on costs
On January 1, 2022, the rules were changed, banning “loyalty penalties” for insurance quotes for auto and home coverage. Insurers are now prohibited from offering their existing customers a higher renewal price than they would pay if they were a new customer.
This should lead to an end to the widespread practice of “price walking”, in which insurers increase premiums each year for their long-term clients.
The Financial Conduct Authority has said that insurers will be required to offer renewing clients a price that is no higher than what they would pay as a new client and that will likely end low-cost offers. unsustainable prices.
He estimated that the new measures will save consumers £ 4.2 billion over 10 years, by removing the loyalty penalty and “making the market work better”.
It comes as millions of Britons are concerned about the rising prices of many other household bills, including energy bills.
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Auto insurance companies often ask for an estimate of drivers’ annual mileage, with costs increasing in incremental increments.
This means those who drive more often will have to pay more, and with some drivers now working from home more often, more savings may be available.
Naturally, the safer drivers are with their cars, the more likely they are to save money, as Quotezone has found that motorists who park in the aisles rather than on the road save over £ 140 on average. every year.
This also extends to safe driving, with driver’s license penalty points massively affecting auto insurance premiums.
Even small changes like adding branding to a vehicle can affect the cost, with drivers often being required to notify their insurer of any changes or could risk making their policy invalid.
One modification that could benefit drivers is to consider upgrading to a smaller engine.
Wilson advised drivers: “From an insurer’s perspective, the more powerful the engine, the more likely the vehicle is to go faster, which can lead to speeding and accidents.
“Bigger engines are also more likely to rack up larger repair bills and be more attractive to thieves.”
Even young drivers could benefit from changing their driving habits when it comes to their auto insurance rates.
“The black box measures speed, acceleration and braking and other criteria that can show insurers that individual motorists are safer drivers than their age, experience or driving records suggest.
“However, some of these policies can be restrictive in terms of where and when you are allowed to drive, so they might not be the right option for everyone,” Wilson added.