Insurance

Even if your car and home insurance is not up for renewal, everyone should get quotes now as in just a couple of days new rules may mean costs will spike.

MCE Insurance Company, one of the UK's biggest motorbike insurers, has fallen into administration. The collapse affects around 105,000 policyholders but MoneySavingExpert.com can confirm that customers will continue to be covered until the end of their policy and claims will still be paid. 

Motorists may be able to save on their insurance by using a new app that rewards good driving with discounts on car insurance premiums. The 'DriveScore' app, built by credit reference agency ClearScore, can offer double-digit discounts to those who drive carefully. Here's what you need to know. 

On 1 January 2022, regulator the Financial Conduct Authority (FCA) brings in new insurance rules. They primarily apply to vehicle insurance (car, motorbike, van) and home insurance (buildings & contents), but it's a monumental shake-up - the biggest I remember.

MoneySavingExpert.com founder Martin Lewis says groundbreaking changes to the way insurers charge new and existing customers are soon to be introduced, which will put an end to the 'loyalty premium' shouldered by consumers. 

About 350,000 Halifax, Lloyds and Bank of Scotland home insurance customers who had a policy between 2009 and 2017 have been paid an average of £38 each in compensation, after the Financial Conduct Authority (FCA) found they were sent misleading renewal letters. Lloyds Banking Group (LBG), which owns all three brands, has also been fined £90 million for breaching FCA rules – we've full details below.

Drivers could save up to £35 a year on their car insurance, the Ministry of Justice has said, as major reforms to the claims process for whiplash injury come into effect this week. The shake-up includes a new online portal for road traffic injury claims, while whiplash cases can no longer be settled without medical evidence. 

Car and home insurers are to be banned from charging existing customers more at renewal than they would expect to pay when taking out a new policy with the same firm, as part of a ‘loyalty penalty’ crackdown. The financial regulator estimates the shake-up will save £4.2 billion over 10 years.

In a rare bit of good news, car insurance is at a seven-year low at an average £420/yr (£160 less than at its height). Part of the drop, according to the source, MoneySupermarket, is that fewer people driving in lockdown has meant fewer claims.

If you starting using your car to commute during the pandemic and plan to continue to do so, you may need to notify your insurer ASAP. A temporary extension of cover organised by the Association of British Insurers (ABI) trade body ends at 11.59pm on Friday (30 April), and if you don't have the correct insurance in place you could be fined and left unable to claim. Some insurers don't need to be notified immediately though and have automatically extended cover further - we've full details below.