Islanders are set to save hundreds of pounds a year thanks to new rules coming into force that prevent home and motor insurers from charging existing customers more than new customers.
The Financial Conduct Authority will ban insurance companies from ‘price walking’ loyal customers, charging them more and more each year despite offering new customers much cheaper offers.
The new rules, which mean companies cannot charge you more than what a new customer would pay, will come into force at the end of September.
It also means that gift card and other freebie incentives offered to new customers, such as a £100 gift card on sign up, will have to be offered to existing customers at renewal.
Sheldon Mills, FCA consumers and competition executive director, has said:
“These measures will put an end to the very high prices paid by many loyal customers.
“Consumers can still benefit from shopping around or negotiating with their current provider – but won’t be charged more at renewal just for being an existing customer.
“We are making the insurance market work better for millions of people. We will be watching closely to see how the market develops in the future and to ensure firms continue to deliver fairer value to consumers.”
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All well and good, except that it will only result in Insurance Companies charging everyone the higher tariffs!
Bollox,it will even things out a little bit,and if we all pay the same what’s wrong with that?
You may be happy to pay higher premiums but I am not. Especially if that “little bit” turns out to be hundreds of pounds.
The original intent of this ill-conceived legislation was to protect a relatively small minority who let their policies rollover from being hit with large increases without realising it because they failed to read the renewal notice.
This legislation goes beyond that and impacts the ability of insurers to attract business and will become just another excuse for the insurers to raise premiums.
Probably be a surge in premiums before Sept
Maybe the same will apply to BT and other companies offering broadband ?
No chance of that…
Car ferries need to be forced to charge the same sum if you book for a day return or a longer period of time away.
It still cost the company a ‘space’ and the same amount, so they should never charge more ‘just’ because YOU are away for longer.
Spot on Jerry you don’t need to be a rocket scientist to see that one ,but very few people do a very valid assessment.
One thing the isurance companies will charge the higher rate to all, so no change!
We will be the loosers & insurance companies will be the winners.
Insurance is the biggest legal con ever conceived.
Someone aught to put an end to no one ever getting paid out the actual value of their losses.
No one I have ever known has ever received enough money to replace their car in a total loss situation. Not even close, thats after excesses paid too.
They always claim that your car is only worth half its actual value.
Absolute ripoff, why do we have to pay for a service that doesn’t work properly.
My car insurance is normally higher on renewal; despite having 13yrs no claim bonus. When discussing renewal with client and telling them I’ve had a lower estimate and will not be renewing, they always undercut the price. This year they knocked £95 off the original renewal figure, this latest new is welcome.
the gov was looking at this 10 years ago ..bet nothing changers..auto renewal..dont worry sir will will sort it all out for you!!…
I never pay the renewal qoute. I phone them and negotiate it lower .if they don’t I go else where .