The vehicle industry experienced some huge changes in 2022 due to many global factors, and some of those changes relate to car insurance. To help get you familiarised with these changes, we’ve highlighted them below.
Over the last 12 months, the cost of car insurance has risen by 6%, which is partly due to the Coronavirus pandemic. During this time, people were driving much less, so the roads were deemed to be much safer, and as a result insurance companies lowered their prices to reflect this. As the pandemic has come to an end, traffic has increased and as a result insurance companies have increased their prices.
A new FCA (Financial Conduct Authority) ruling has been introduced to remove the “loyalty penalty” that customers were experiencing if they stayed with one insurance company for a long period of time. Insurance companies were capable of increasing prices for current customers at the renewal of a policy, while offering new customers much lowers premiums for a new policy. The FCA ruling prevents companies from doing this, meaning existing customers should be protected from price increases, while new customers won’t benefit from the cheaper introductory prices they have been used to.
Auto-renewal is one thing that is not changing. However, rather than letting insurance providers roll over your insurance for another year, with a potential price increase, you should cancel your auto renewal so you can search for the best possible insurance deal.