Cash point

The Financial Ombudsman Service gets 200 complaints a month about insurance costs, as people feel they’re paying too much.

Price hikes at renewal and ever-increasing costs over the years, despite no change in circumstances, means people pay a premium for loyalty to a firm.

Under new Financial Conduct Authority rules, insurers must clearly show what the previous year’s premium was and encourage people to shop around at renewal time, especially those who have renewed a policy four or more times.

But this clearly isn’t working for many people, so you need to ensure you don’t pay over the odds.

Always question a premium you’re unsure about, especially one that’s shot up in price since the previous year. Answer all of your insurer’s questions about you and the cover you need fully, so you get the right cover at the right price.

There are no rewards for loyalty so always check to see if you can find the same cover for cheaper elsewhere.

Caroline Wayman, chief ombudsman and chief executive at the Financial Ombudsman Service, said: “Insurers have a responsibility to treat customers fairly. That includes engaging with customers about what they’re paying in a way that’s not misleading. In a small but significant number of cases we’ve seen that this hasn’t happened and people are paying the price for loyalty.”