Prices of Home and Car Insurance may Change with New Rules

The prices for the home and motor insurance are changing due to the new rules that are coming into effect from January 1, 2022. The new rules are introduced for the protection of loyal and vulnerable customers. Under the new regulations set by the Financial Conduct Authority mentions anyone renewing their policy will have to pay no more than what a new customer would pay. 

The prices would increase only for those who continuously switch, where the long-standing customers would pay less. The Customer Finance Expert at market analyst, Brian Brown has said that there are no signs of insurers leaving the market, which results in customers still having plenty of choices for their products.

The policy is designed to focus on “price walking” and putting an end to it, under which the customer is charged higher even after staying with the same company for years.

The new rules are brought in by the FCA after it received a complaint from Citizens Advice about the loyalty penalty, where those who switched received much better deals as compared to new customers who were loyal but still charged more.