Before the new rules change in 2022, a car insurance customer saves his mother nearly £500.
Before the new rule changes in 2022, a CAR insurance customer saved their mother nearly £500.
Mr S Alabaster claimed that his mother had spent years “bargaining” with her current car insurance provider in order to get lower rates.
However, after she received a massive £700 renewal price, he decided to look for new deals for her.
Mr Alabaster quickly found another insurance company that would cover her for just over £200.
“My mother had stayed with the same insurer for ten years, after years of haggling and believing that this would get her the best deal,” he explained.
“I knew there would be savings to be made by shopping around when she received her renewal price of £700.”
“She was offered a price of £220 after running a quote on Confused.com – a £480 savings!”
“I did the same thing with her home insurance and saved just over £400 with additional coverage.”
Any price comparison site, such as MoneySuperMarket, Compare the Market, or Confused.com, can be used by drivers to check car insurance prices.
Martin Lewis, a money-saving expert, had previously urged drivers to get a renewal quote ahead of the new 2022 rules, which took effect on January 1.
The Financial Conduct Authority (FCA) has issued new rules that prohibit car insurance companies from raising premiums for existing customers.
Drivers could save £4.2 billion over ten years as a result of the changes, according to an FCA report.
Many people who have seen their costs rise year after year will welcome the end of the loyalty premium.
Mr Lewis, on the other hand, expressed concern that switcher prices would become “more expensive.”
“However, switcher prices are likely to rise in the short term,” he added.
“Why? Because existing customers are unlikely to drop to the level of new customers.
It’s the Kwik Fits Midsommer Madness sale, and you can save 10% on your MOT with the UK’s (hashtag)1 MOT tester if you book online.
“Prices for switchers are likely to rise as they meet somewhere in the middle.”
The FCA previously stated that “firms are unlikely to offer unsustainably low-priced deals to some customers.”
Drivers, however, “can still benefit” from shopping around or negotiating with their current provider, according to the report.
Mr Lewis has previously advised drivers to renew their policies 21 days before their expiration date.
“Brinkwire News Summary.”