Drivers will save £200 as insurance 'loyalty penalty' outlawed
City watchdog says the reforms will save customers £3.7bn over a decade
28 May 2021 • 9:32am
Loyal customers could save up to £200 a year on their car and home insurance after the City watchdog confirmed plans to ban the so-called loyalty penalty.
For many years, insurance firms have kept the best deals for new customers while charging existing policyholders more when they renew. Less financially savvy customers who do not shop around each year have paid more as a result.
The Financial Conduct Authority confirmed it will outlaw this practice from September, also known as “price walking”, and make it easier for policyholders to cancel the automatic renewal of their policy.