All change for insurance premiums in 2022
Next year, the way insurance premiums are calculated will be changing to help to protect consumers. The Financial Conduct Authority has been looking into the insurance market, including the way discounted prices have been increasingly offered to new customers to get them to switch providers.
Fairer pricing for everyone
These tempting low prices can’t be offered in the long term, so when customers renew over the years, their price creeps up. This means that new customers are paying less than customers who stay. The Financial Conduct Authority has put a stop to this market-wide practice, which Saga fully supports. From January 2022, anyone getting their insurance invite will be offered the same price, or less, as an equivalent new customer.
So, when you get your next renewal for your home or car insurance from any provider in 2022, you may find that the price doesn’t seem to tie in with the last one you had. But after this levelling of the playing field when prices may change, things will be clearer, and you can be confident that new customers aren’t getting a lower price than those who stay.