Car Breakdown Cover - FCA?

abssorb

My RAC Renewal this year saw a 38% increase to £355, so I've moved elsewhere.

While waiting on hold to cancel my direct debit (wouldn't allow cancellation on line) I decided to run a like-for-like quote as a new customer, which came out at £243.     

The existing RAC policy says it's subject to FCA regulation.  I recall that the FCA made a ruling that renewing customers can't be charged more than new customers.

When I got through to the RAC I pointed this out, and they said it only applies to car insurance, and this is not car insurance.  I can't find any FCA references to clarify.

Thoughts?

dunstonh

The existing RAC policy says it's subject to FCA regulation.  I recall that the FCA made a ruling that renewing customers can't be charged more than new customers.

Not exactly.  it has to be the same product version and terms via the same distribution method.

It also doesnt apply to breakdown cover.

Aretnap

abssorb said:

The existing RAC policy says it's subject to FCA regulation.  I recall that the FCA made a ruling that renewing customers can't be charged more than new customers.

When I got through to the RAC I pointed this out, and they said it only applies to car insurance, and this is not car insurance.  I can't find any FCA references to clarify.

It applies to car insurance and home insurance actually, but it makes no difference as breakdown cover is neither of those.