CMA tackles loyalty penalty charges
The CMA have today announced a package of reforms in response to an investigation raised by Citizens Advice with concerns that companies are penalising existing customers by charging them higher prices than new customers.
Louise O’Shea, CEO at Confused.com said:
“The CMA’s reforms should go some way to slashing the billions of pounds being slammed upon customers for simply being loyal, but they could go further to include other markets such as car insurance.
“Our research shows more than half (54%) of drivers who renewed their car insurance between July and September this year (2018) were confused when their premium with their current insurer increased by £50, on average.* Our latest car insurance price index reveals the cost of car insurance is starting to creep up again, with drivers paying £760 for their premiums, on average.
“With prices rising again, it’s important people are educated that they could make substantial savings by shopping around online, using last year’s price as a benchmark. Luckily there is a requirement for car insurers to show their customers what they paid last year at point of renewal. Drivers should check their renewal letter and challenge themselves to beat their renewal price.”
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*Statistics obtained from a nationally representative survey of 2,000 UK motorists carried out by One Poll on behalf of Confused.com. The survey ran between 04/10/2018 and 09/10/2018.