End to motor cover rip-off

INSURERS have promised to stop hitting vulnerable customers with huge price rises when they renew their car insurance.

It is a victory for Money Mail, which has campaigned to end the £1 billion auto-renewal con.

Insurers routinely roll over customers’ policies each year. Typically, drivers will receive a poor deal.

Customers are often unaware they are paying too much. The disabled, sick and those who struggle with reading, writing or maths have been particularly badly hit.

Under the new code of conduct, however, insurers and brokers are promising to carry out reviews to identify vulnerable customers and let them know better deals are available.

In addition, insurers will make sure customers are aware that they should regularly review their cover to ensure it meets their needs.

However, the new rules — drawn up by two trade bodies, the Association of British Insurers and the British Insurance Brokers’ Association — are only voluntary, so there is little or no comeback for customers if firms flout the rules. And the set of guidelines only applies to those considered ‘vulnerable’, so other customers may still find themselves paying over the odds.

Companies have also given themselves one year’s grace to train up their staff before the new code is properly in force.

In December, regulator the Financial Conduct Authority told firms they must include the previous year’s premium on renewal documents.

This should allow customers to see if they are paying too much.