Every year, many vehicle insurance customers will experience an increase in their premiums as a result of continuing with the same company year after year. In the next ten years, automobile owners will be able to save billions of pounds on their insurance premiums thanks to new Financial Conduct Authority (FCA) regulations, regaining control of the market

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This is wonderful news for you because of the following reasons

Insurance prices for existing customers have been growing for a long time, as seen by your bank account.

‘Price-walking’ is a term used to describe this behaviour. However, following a 2018 FCA report found that new customers are frequently offered discounted premiums, individuals have been calling for regulatory reforms. Finally, they will have their way and ensure that all customers of home and auto insurance are treated equally.

He added, “We are consulting on a radical package that would ensure corporations cannot charge renewing customers more than new customers in the future, and put an end to exorbitant costs paid by some long-standing consumers.”

Financially, how is this going to affect me?

For a year’s worth of coverage, new clients for buildings and contents insurance typically pay £130 less than they did before. In contrast, the FCA estimates that if they had stayed with the same company for five years, they would have paid £238.

Customers who switched auto insurance providers instead of remaining loyal to their old provider saved an average of £71 annually.

Over the next ten years, clients could save more than £1,000 on their house insurance. During that ten-year period, auto insurance savings might total more than £700.

Renewal of an existing policy resulted in an amazing overpayment of £1.2 billion by millions of policyholders.

During this period, regulation reshuffles are expected to save customers a total of £4.2 billion.

However, there is no guarantee that premiums will not rise due to other factors, but at least you can be comfortable that you are no longer the victim of “price wandering” and misguided loyalty. To put it another way, new and returning customers will receive the same level of service.

Make sure that you haven’t accounted for all of your money just yet

By the beginning of 2022, these savings will be realized. This means that you’ll have to hold on to the wheel a little longer before you get a return on your investment.

Is the FCA’s new regulation going to be implemented?

To put your mind at ease, you may be certain that the FCA regulations are a system of laws and procedures that ensure financial businesses operate in a fair and effective manner.

Additionally, insurance companies must submit data to the FCA. Customers can be sure they are getting what they paid for because of the regulatory body.

Since there are almost 60,000 FCA-regulated businesses in the UK alone, you can already benefit from financial security and savings thanks to FCA laws.

There are no intermediaries in the general insurance industry (for example, brokers)

• General insurers and any intermediaries (for example, brokers)
• Banks, building societies, and credit unions
• Credit providers
• Financial advisors and investment managers

Why you should still shop around

You don’t have to wait until 2022 to save money on your vehicle and house insurance policies by using comparison websites.

You’ll still want to keep an eye on comparison websites after the new laws are in place. In spite of the fact that all new and current policies will be treated equally, you can still find the best deal on your policy by using price comparison websites. Compare auto insurance quotes from up to 75 brokers in minutes with our free service, mustard.co.uk.

The premiums will continue to fluctuate from year to year, as they always do. However, the new laws from the Financial Conduct Authority will give you the best opportunity of obtaining the proper policy. We’ll be able to pass along those savings to you, so all you have to do now is determine how you want to spend them.

Comparison of insurance policies that you can trust

Mustard.co.uk is a completely unbiased insurance comparison website. Of course, we are regulated by the Financial Conduct Authority (FCA) under Firm Reference Number 566973.

Fill out our online form to get a free auto insurance quote.

Remember that with mustard.co.uk, if you discover a lower price elsewhere online, we’ll match it!*