When your insurance comes to the end of its annual period, you will have to either renew it for another year, or search for another policy with someone else. Often, consumers have found that they seem to be punished with higher costs for staying with the same insurer. This is known as the loyalty tax. However, this practice might be coming to an end. The FCA is considering banning or restricting the ability of insurers to raise the prices they offer to renewing customers.
The way that the price of your insurance can seem rather opaque. With taxes, fees and commission added on to the initial premium, why you are being charged as much as you are can be confusing. However, new legislation could make it a requirement that your insurers tell you exactly where your money is going. Your insurance in 2020 should be more transparent than ever before.
Switching insurers should be an easy process. However, it often turns out differently. Some companies have tried in the past to make it difficult for their customers to leave at the end of their period of insurance. This is via auto-renewing policies without having specifically asked permission. FCA regulation could limit the ability of brokers to do this, or reduce the number of times a policy can auto-renew.
Getting a deal
How then can you get a good deal on your insurance in 2020 when there seem to be so many ways to lose out? One of the most useful ways of saving money is to shop around. While you can do this yourself, it is often easier to use a broker. Brokers search the market for you to find the best details available. At Alternative Insurance Brokers, we specialise in finding cover for all sorts of people, and all sorts of vehicles. More importantly though, we avoid the unscrupulous practices that you might have experienced elsewhere.