New car insurance changes causing ‘confusion’ as prices ‘highly likely’ to rise in 2022

Martin Lewis warns viewers about drastic car insurance changes

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Louise O’Shea, CEO at Confused.com said the new rules have created “a lot of confusion” with many under the assumption their prices would not go up. The new FCA car insurance rules ban firms from artificially increasing their prices for existing customers while offering cheap deals for new ones.

However, she warned the UK average insurance price can still be affected, pushing prices up for all drivers.

She said: “Given the fact that we’ve all probably overspent this Christmas, it will be welcome news that insurers can no longer overprice renewing customers.

“But we’re also seeing a lot of people interpret this as meaning that their renewal price will no longer increase.

“This really is not the case, and we can understand how this is creating a lot of confusion for consumers.”

Ms O’Shea warned the average cost of car insurance is “highly likely” to increase regardless of the FCA regulations as more people return to work.

She warned if the average cost of car insurance in the UK is more expensive at the time of your renewal compared to the previous year, your price could still change.

Similarly, drivers who have made a claim on their policy should also still expect price increases.

Those who have changed their house, job or any of their details could also be set for price increases despite the new rule.

Ms O’Shea warned the average cost of car insurance is “highly likely” to increase regardless of the FCA regulations as more people return to work.

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Ms O’Shea warned the average cost of car insurance is “highly likely” to increase regardless of the FCA regulations as more people return to work.

She added: “In the past 12 months we’ve seen the cost of car insurance reach the lowest point in six years.

“And this is mostly down to the fact that people haven’t been driving as often and have been at home a lot more than usual.

“Now that we are returning to work or spending more time on the road, the risk of making a claim is increasing.

“Added to this, the fact that the costs of making repairs, replacing vehicles and taking care of individuals hurt in accidents are increasing, the overall cost of claims is going up.

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