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Car Breakdown Cover - FCA?
abssorb
Posts: 131 Forumite
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?
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?
0
Comments
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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.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
It applies to car insurance and home insurance actually, but it makes no difference as breakdown cover is neither of those.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.0
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