Drivers have just one week to close a good auto insurance deal before a major change
DRIVERS only have a week to make deals on their auto insurance before a major rule change.
From January, insurance companies will be banned from charging existing customers more than new ones.
Loyal customers who stay with an insurer often pay more for their policy – this is known as the loyalty penalty.
Drivers can usually find a better deal when renewing their insurance by shopping or even haggling with their current provider.
Renewal quotes are often much higher than those for new customers – sometimes even hundreds of pounds more.
But the financial regulator announced new rules earlier this year to prevent that from happening – and they are expected to come into effect from January 1, 2022.
The Financial Conduct Authority (FCA) estimates Britons could save billions over the next 10 years as a result of the reshuffle.
There are warnings that a ban on charging existing customers more than new ones could result in price hikes for everyone.
And motorists have been urged to check NOW if they can get a better deal if their policy expires this month.
You will usually receive a letter from your insurance company letting you know when your policy is to renew and how much it expects to charge you.
Usually this will renew automatically, unless you have unsubscribed, and it might come at a higher price.
You don’t have to agree to this though.
By using comparison websites, you can get quotes from other insurers and see if you can get a better deal.
It is best to use several different sites, as they may not list all insurance companies.
Some insurance companies, like Direct Line, are also not listed on any comparison sites, but you can go directly for a quote.
You will want to verify that you are getting the same coverage as your current policy.
Or if you’ve had a change in circumstances, be sure to include it in an updated quote.
You can use quotes to try to haggle a similar price with your current supplier – or get them to beat it.
If they can’t, you can switch to a new provider with a better deal.
According to Compare The Market, buying car insurance could save you £ 262 per year.
Meanwhile, renewing your insurance exactly 20 days before the expiration date could save you an average of £ 306.
These car checks could add hundreds of pounds to the value of your vehicle.
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