New insurance pricing regulation from 1 January 2022

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thecaretaker
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Dec 2021 08 19:37

New insurance pricing regulation from 1 January 2022

At last, new rules come into affect from 1 January 2022 for car and home insurance.

LV tells us: From 1 January 2022, we'll be adhering to a new pricing regulation set out by the Financial Conduct Authority (FCA). In a nutshell, all insurers will need to make sure that existing customers never pay more than a new Car or Home customer for a like for like policy.

So, if you're an existing Car or Home customer, you can rest assured that you'll always pay the same or less than a new customer when you renew.


Unfortunately, if you have just paid this years premium, you'll not get a rebate but this will ensure that you are not penalised for being a loyal customer in the future.

If you have been a long time loyal customer to your car or home insurance company, you may well notice the biggest savings as your premiums will be lowered as if you are a new customer.
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https://www.lv.com/gi/fca-faqs?utm_sour ... ntent=faqs

The bad news, is Martin Lewis predicts that insurance firms will raise insurance prices for all customers to compensate meaning we will all be paying more and there will be no advantage in switching insurance firms.

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Keyolder
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Dec 2021 08 20:16

Re: New insurance pricing regulation from 1 January 2022

That’s good news, I’ve always shopped around every year for car insurance and saved quite a bundle on the renewal cost. I’ll still get a few quotes though as there may still be savings to be had.
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Dec 2021 08 21:17

Re: New insurance pricing regulation from 1 January 2022

Many insurers, especially if you go through a third party, have a renewal fee in with the premium you pay.

SAGA charge £25 on each policy they sell as they are in fact brokers and when you buy a policy with them, although you insure through them, and claim through them, they actually insure you through a third party! Strangely enough, even with the £25 fee, my home insurance through SAGA was the best value out there.
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thecaretaker
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Dec 2021 08 21:21

Re: New insurance pricing regulation from 1 January 2022

Keyolder wrote: Wed, 8th Dec 2021, 8:16pm That’s good news, I’ve always shopped around every year for car insurance and saved quite a bundle on the renewal cost. I’ll still get a few quotes though as there may still be savings to be had.
Yes I agree, some insurance firms may 'discount' or give incentives to new customers instead. As long as their 'normal' prices are shown and set for all to see. But they will probably need to be more upfront and make it clear that this is a 'discount' for being a new customer and is only applicable for the first year.

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thecaretaker
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Dec 2021 08 21:41

Re: New insurance pricing regulation from 1 January 2022

Dragonrider wrote: Wed, 8th Dec 2021, 9:17pm ...they are in fact brokers
My word you have just brought back some memories for me. Many years ago, I went into town to our local insurance broker who would look at all the available insurance companies and looked for the one with the best deal for me. They would usually offer 2 or 3 different options and I'd say I'd use "that one". Sign the paperwork and they would give me the insurance certificate for another year. It all seemed much simpler in those days. You'd also go to your local broker if you had a claim and they dealt with it all for you.

One other point I am concerned at is the 'like for like' comment in the new regs. It is really difficult to compare insurance firms 'like for like'. OK, you can pick fully comprehensive, protected no-claims discounts, look at excess charges and get an idea of what is covered, but when it comes to the small print, they are all different. Not even windscreen cover is like for like anymore. Many are charging an excess fee even if a repair is made. For replacement some are asking upwards of £200 excess. If you don't use the insurance companies 'preferred repairer' and you say want to go to your main dealer, some slap an additional excess fee on you. There are so many factors to take into account to truly work out which are the best deals.

I'm currently with LV mainly because they are one of the few insurance companies that specialise in electric vehicles. Included in the policy is my 7kw charger and the charging cables stored in the car are covered within the policy for loss or damage. Very few seem to offer this.

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Nail
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Dec 2021 09 06:31

Re: New insurance pricing regulation from 1 January 2022

So essentially it's just going to get more expensive.
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Dec 2021 09 08:59

Re: New insurance pricing regulation from 1 January 2022

Nail wrote: Thu, 9th Dec 2021, 6:31am So essentially it's just going to get more expensive.
That was my thoughts exactly!
All the deals for new customers will simply disappear and we will all pay the inflated renewal prices..
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Jack-the-Bug
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Dec 2021 09 10:02

Re: New insurance pricing regulation from 1 January 2022

I don't think this is a good thing.
It is a nuisance having to ring round, check prices etc. but at least we can do that at the moment.
Once this comes in we won't get that chance as they will just inflate all the prices for new customers and there won't be any bargaining power.
I hope I am wrong but doubt it.
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Keyolder
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Dec 2021 09 14:34

Re: New insurance pricing regulation from 1 January 2022

Jack-the-Bug wrote: Thu, 9th Dec 2021, 10:02am I don't think this is a good thing.
It is a nuisance having to ring round, check prices etc. but at least we can do that at the moment.
Once this comes in we won't get that chance as they will just inflate all the prices for new customers and there won't be any bargaining power.
I hope I am wrong but doubt it.
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