Insurance customers should still be proactive by haggling and potentially switching when their policy comes up for renewal, as they could be paying more than necessary despite a ‘loyalty penalty’ ban having been introduced at the start of this year, according to Which?
The Financial Conduct Authority (FCA) put the ban in place after finding that millions of home and motor insurance customers were losing out by renewing repeatedly with their existing providers. In January, the FCA implemented new rules which banned car and home insurers from offering different prices to equivalent new and renewing customers.
In a survey of more than 14,000 Which? members, the consumer group found that just over half (51%) of those with home insurance, and around four in 10 (43%) with car insurance, were paying a higher premium this year than they did last year.
