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MSE News: Car and home insurers to be banned from charging existing customers more than newbies
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MSE_Helen_K
Posts: 166 MSE Staff

Car and home insurers are to be banned from charging existing customers more at renewal than they would expect to pay if they were taking out a new policy with the same firm, as part of a ‘loyalty penalty’ crackdown...
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Comments
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Ill believe that when I see it.1
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It'll mean higher prices for new customers and no first year discounts.
It's similar to credit card fees, where it was felt unfair that only customers using credit cards should pay the fees. Now everyone can enjoy paying the fees, without the hassle of using a credit card.
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blueste said:
I do wonder if this is going to result in higher prices for those of us that always shop around and switch?1 -
Many times i have read complaints about this,insurance companies take advantage of folk they carry on year after year.
About time the FCA got involved .0 -
Sandtree said:blueste said:
I do wonder if this is going to result in higher prices for those of us that always shop around and switch?
It's more nanny-state stuff really. Give companies and people the freedom to choose various things, a minority of people lose out because they don't pay attention, then complain the world is against them, so nanny the regulator steps in to put a metaphorical plaster on their hurt feelings and say 'there, there, don't you fret, nanny will sort out the big bad companies' . . . with the inevitable result that most people will end up paying more for their insurance. Nice.
It's a bit like that ridiculous EU (was it?) ruling about young persons car insurance being discriminatory because it was so much cheaper for girls than boys. Hmm, so nothing to do with the different accident rates at all then?! So of course when they rule that prices must be the same for both genders, what is the obvious thing that will happen?3 -
I wish people would stop calling it a loyalty penalty. Its not. Its an apathy penalty. Why should people who actively look after their finances be penalised, and people who can't be bothered be rewarded? Apart from a small number of people who for health reasons don't have the capability to look after their finances and need protecting, the correct policy response for everyone else is education, not regulation.4
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isasmurf said:Why should people who actively look after their finances be penalised, and people who can't be bothered be rewarded?4
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Insurance companies take advantage of those who don’t shop about for deals (mainly the elderly).
Having owned a car for almost 20 years. I have only used 6 different insurers in this time. One time I stayed with the same insurer for two years as I bartered the new customer quote and the free Karcher washer. Got that £25 gift card.
Im surprised that the FSA have not commented on the high APR some insurers charge. Can people pay for their insurance on a credit card?
I pay my car insurance in a single payment as fortunately it’s due in March and use the council tax ‘free months’ of payment to pay0 -
Thrugelmir said:isasmurf said:Why should people who actively look after their finances be penalised, and people who can't be bothered be rewarded?0
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