Insurers forced to end annual renewal rip-off

CAR insurers must now tell you how much you paid for cover the previous year when they send out renewal forms.

Under new rules to stop ripoffs, which came into force on April 1, companies must clearly state the past year’s premium on the letters.

The law was changed to make it easier for loyal customers to see how much their bill would rise if they stayed with the same firm, rather than shopping around.

The quote is often up to 20 pc higher than the price paid by new customers.

Money Mail campaigned for the new rules after finding millions of customers were paying hundreds of pounds over the odds. However, critics are warning that insurers could try to bury the old premium in renewal reminders to keep customers in the dark over price.

Comparison site Gocompare says the new law does not clearly state what wording should be used or how prominently it should appear.

When customers haven’t switched for at least four years, firms must include this warning: ‘You have been with us a number of years.

‘You may be able to get the insurance cover you want at a better price if you shop around.’ Lee Griffin, chief operating officer at Gocompare, says: ‘Five years with the same provider is too long.

‘We’d like to see a renewal process where customers are actively encouraged to shop around every year.’

City regulator the Financial Conduct Authority says it will be ‘keeping a close eye’ on the way insurers respond to the new rules. It says the changes could save drivers up to £103 million a year.

We want you to send us your car insurance renewal letters — and we’ll shame the firms that do a poor job.

Write to money. mail@ dailymail.co.uk or Money Mail, 2 Derry St, London W8 5TT.