The closure of Kwik Fit Insurance (KFI) will not affect existing customers as the firm's parent company has vowed to provide coverage as normal. But KFI will stop accepting new policyholders on all products at the end of the month.

Ageas, the company behind KFI, previously confirmed the business, based in South Lanarkshire, Scotland, will close on Friday 31 March with the loss of 521 jobs.

If you're one of hundreds of thousands signed up to a KFI policy – with cover ranging from breakdown to pet insurance – Ageas will continue to pay claims and handle renewals. The only difference will be that your policy will be managed from a different office.

An Ageas spokesperson told us: "Existing Kwik Fit Insurance customers should be reassured that there is no impact on their insurance policy and they will be able to renew and make a claim in the normal way.

"As a large multi-site, multi-brand insurance business we will manage existing Kwik Fit Insurance customers from our other offices once our site in Uddingston is closed. We have put in place robust plans to manage this transition, thereby minimising any impact on service levels."

We've asked Ageas whether it's getting in touch with existing customers to inform them of any changes to policy contact details – and will update this story when we know more.

Check out our Cheap Breakdown Cover guide for info on how to find the best deal for you.

Martin Lewis
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KFI products closing for new business

KFI previously featured among the top picks in our Breakdown Cover guide and was seen as the best buy for European breakdown insurance.

However, according to the KFI website, new customers are no longer being accepted for breakdown cover.

Of the seven main products it offers – car, home, motorbike, van, breakdown, pet and warranty – only home and pet insurance currently appear to be available for new business. This will not be the case come the end of the month.

An Ageas spokesperson said: "New customers, who do not yet have a policy, will not be able to buy from Kwik Fit Insurance from April 2017."