2. Car and home insurance rule changes may see costs spike
On 1 January, the Financial Conduct Authority will usher in new rules that will force car and home insurers to charge new and existing customers the same price for their policies, marking the end of the loyalty premium charged to customers who rarely switch providers.
The flipside of this, however, is that those who regularly switch might see a spike in the price of their policies.
What can I do about it?
Regular switchers, who might lose out, have a few options:
- Time is tight but if you regularly switch it’s important to get new quotes now. By doing so you may be able to save some money before the 1 January rule change.
- Be alert. Switching 23 days before renewal is the sweet spot for car insurance (21 days for home insurance). Delay, and prices can almost double as insurers’ algorithms show later quote-getters are a higher risk.
- Remember to check at least two comparison sites. They don’t all include the same insurers, and even when they do, they can have different prices.
For a full breakdown on the insurance changes and for analysis from MSE founder, Martin Lewis see his Car and Home Insurance Warning. You can also visit our Cheap Car Insurance, Cheap Home Insurance and Insurance Haggling guides for the latest tips.
