Car insurance faces FCA probe in loyalty "rip off" - Motoring Editor comment
The Financial Conduct Authority (FCA) announced this morning that it is to investigate how home and car insurance policies are priced after finding "hidden" discrimination between customers.
Citizens Advice launched a super-complaint claiming that customers who stick with the same supplier for a variety of household services are losing a total of £4.1bn a year. That amounts to an average of £877 per person.
Amanda Stretton, motoring editor at Confused.com says:
“It's easy to see why drivers are upset about not being rewarded for loyalty. There are many factors influencing the rise in car insurance prices, but for cash-strapped drivers to be hit by increases year on year for being loyal is hard to bear.
“Thankfully insurers are now required to show drivers the price of their premium from the previous year at the point of renewal, which will serve as a reminder that loyalty doesn’t always pay. Motorists looking to avoid car insurance price hikes should to take note of their renewal price and run a quote through a car savings site, such as Confused.com, to see if they can get a cheaper premium elsewhere”.