Lee Griffin, one of the founders of GoCompare comments on the FCA’s interim report of its market study into the pricing of home and motor insurance.
“We welcome this update from the FCA. The proposals, if implemented, will go some way towards increasing transparency for consumers and encourage more shopping around and switching. The proposals also call on the industry to stop raising prices for those customers that auto-renew year after year, which could help protect the most vulnerable and those worst affected by the so-called loyalty penalty.
“But progress to this point has been slow. It’s been over a year since Citizens Advice launched its super-complaint, and we are only just starting a consultation phase. For the estimated 6 million people worst affected by the loyalty trap, it is important to stress that this isn’t going to be fixed overnight.
“Even if most of these proposals are implemented, what we are likely to end up with is more transparency and some intervention. The loyalty penalty won’t be wiped out and millions of existing insurance customers are still likely to end up paying more than new customers.
“Insurance is a very competitive market and those that shop around will always get a much better deal on their car or home insurance. Therefore, the reality for most consumers remains the same – new customers will continue to get a better deal on their insurance and the only way to avoid the loyalty penalty is to behave like a new customer and switch.”
Customers switching and saving with GoCompare could save £239.69 on their car insurance.1
Top tips from GoCompare to get the best insurance deals:
- Remember that if you do nothing at renewal time you will likely be auto-renewed, and while this ensures you’re still covered, you will undoubtedly pay more than you need to for the privilege,
- NEVER accept your renewal quote without first checking that the price you are offered is competitive – even if your insurer was the cheapest last year,
- Give yourself time to review your cover – note the renewal date in your diary and shop around at least a week before your policy renews to get the best deal,
- Compare prices AND check the small print. Make sure you’re making like-for-like comparisons and understand all the charges, any penalties, exclusions and terms and conditions you will be required to meet.
For more information on shopping around and switching insurance policies, visit: https://www.gocompare.com/insurance/
For further information please contact:
Anders Nilsson or Louisa Marsden at GoCompare on 01633 654 054 / 01633 655 132
Gordon, Jason or Liz at MAW Communications on 01603 505 845
Keep up-to-date with GoCompare on Twitter; @GoCompare
Notes to editors
- According to independent research from Consumer intelligence in July 2019, 51% of consumers could save up to £239.69 with GoCompare Car Insurance.
GoCompare is a comparison website that enables people to compare the costs and features of a wide variety of insurance policies, financial products and energy tariffs.
GoCompare does not charge people to use its services, and it does not accept advertising or sponsored listings, so all product comparisons are unbiased. GoCompare makes its money through fees paid by the providers of products that appear on its various comparison services when a customer buys through the site.
GoCompare does not sell its customers’ data.
When it launched in 2006, it was the first comparison site to focus on displaying policy details rather than just listing prices, with the aim of helping people to make better-informed decisions when buying their insurance. GoCompare has remained dedicated to helping people choose the most appropriate products rather than just the cheapest, and has teamed up with Defaqto, the independent financial researcher, to integrate additional policy information into a number of its insurance comparison services. This allows people to compare up to an extra 30 features of cover.
GoCompare is the only comparison website to be invited to join the British Insurance Brokers’ Association (BIBA) and is authorised and regulated by the Financial Conduct Authority (FCA).