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

MrFrugalFever

Well I’m a cynic Sandtree and will believe when it personally benefits my wallet!

Sandtree

MrFrugalFever said:

Well I’m a cynic Sandtree and will believe when it personally benefits my wallet!

Assuming you follow the advice of this website then you will feel the detriment not benefit.  The benefit is intended to be for, predominately, older customers who've not switched insurer or done new business quotes for a decade and is currently paying well over the odds

MrFrugalFever

Absolutely, my comment was more in relation to the regulators doing what you suggested. Either way, those of us who shop around won’t feel the benefit as you suggest.
luckily I’m of the age where insurance has become far more ‘reasonable’, but I still think there’s room for improvement!

kaMelo

I've done some more thinking on this one and still don't see how it can possibly work to the benefit of customers
The theory and resulting headlines garner wide support but the implementation will never be that simple, indeed I cannot think of a single instance where a regulator has got involved in pricing control without unintended consequences to the detriment of the majority of people.

lonibra

While these new regulations will no doubt mean that I (like most other active MSE folk) will pay more than we are now, this is long overdue and I am wholly in favour of it.

It will reduce the ability of insurance firms to continue ripping off existing clients who are vulnerable, not internet savvy, have language barriers, etc.

Well done to Martin and Citizens Advice for pursuing this doggedly over the past 3 years and getting things to this point.

unkle

Anyone who shopped around will likely pay more in future.
Anyone who didn't shop around will likely pay less in future.
It's just evening everything up, quite rightly, but they'll be as many unhappy people as happy people over this for sure, but it's certainly fairer overall.

Sea_Shell

Is there anything that stops insurers offering any other "incentives" to new customers?

Free cover for XYZ in the first year? 

roddydogs

Or bigger cashback on quidco for example.

Sandtree

Sea_Shell said:

Is there anything that stops insurers offering any other "incentives" to new customers?

Free cover for XYZ in the first year? 

Yes, the rules state how these should be factored in... anything that is cash or cash like has to be considered so new and renewing customers are equal but non-cash (eg free cuddly toy) doesn't.  See page 19 of https://www.fca.org.uk/publication/policy/ps21-5.pdf 

roddydogs said:

Or bigger cashback on quidco for example.

I wonder how these indirect promotions will be considered... in days of old this was really marketing budget given to advertisers and just these advertisers decided to give part of that fee on to the person that had earned it to them. They are clearly now much more established and may be considered differently. 

Marvel1

Sea_Shell said:

Is there anything that stops insurers offering any other "incentives" to new customers?

Free cover for XYZ in the first year? 

Aviva just did it now, free legal cover for first year.  They came up cheaper for me, so renewal down ready for end of the month and also £30 cashback added in.