Home and motor insurance; how the new changes could affect you
The Financial Conduct Authority (FCA) have recently brought in rules ensuring firms can no longer ‘price walk’ their policies, meaning they can not continue to increase renewal prices year on year, especially where new customers are often seen to be paying considerably less in insurance premiums compared to customers with upwards of 5 years loyalty under their belts.*
Companies offering home & motor insurance, including price comparison sites, and advisers with special lender deals, will all have to adhere to the new rules stipulating fair treatment for all consumers.
The changes however positive, may cause some issues for those who routinely shop around for the cheapest deals annually, and as the rules come into place officially from the 1st January 2022, customers pay see price hikes between now and the end of the year, as companies aim to ‘balance the books’ in anticipation of the changes.
Some experts advise renewing your policies early in order to avoid the price hikes, though cancellation fees may be charged, undoing any savings made.
As we return to ‘normality’ home insurance is likely to be impacted anyway, regardless of the new ban. With many of us having made home alterations, its important to understand that they may have altered your home value and as such your insurance may need to change to accommodate new structural values.
Not only that but as we start heading back out to work, we may miss the little clues to home damages many of us may have picked up during home working, such as leaky pipes. And as we head into winter, as begin to travel abroad again, our pipes may be subjected to freezing while we’re away and not using them continuously as we did over the previous winter period.
Our shifting behaviours have impacted insurance through reduced thefts and increased accidental damages too. It is important to bear all of this in mind when looking to renew or change your insurance provider too.
If you’d like to discuss your next home insurance quote, get in touch to see if we could find you the best cover for your needs.