Share
The change, which begins in January, is expected to save customers an estimated £4.2billion over a decade. It means those who have been unwittingly paying unreasonably high premiums – around six million policyholders – could have them slashed when the measures come into effect.
The changes will put an end to the very high prices paid by many loyal customers , the regulator said.
On average a new customer pays £285 for motor insurance while those who have been with their provider for more than five years pay £370. I saved £1,000 by finding a new provider
Sam Devo s car insurer failed to reward his loyalty so he took his business elsewhere
Drivers are being quoted cheaper car insurance premiums for the first time in years.
But motorists could still pay hundreds over the odds if they accept their new price without shopping around, experts warn.
Insurers have long had a reputation for pushing up prices at renewal, with the so-called loyalty penalty costing policyholders £1.2billion a year.
Yet premiums are finally coming down after the number of successful claims made by drivers plunged by nearly a fifth last year.
Shop around: Insurers have long had a reputation for pushing up prices at renewal, with the so-called loyalty penalty costing policyholders £1.2billion a year