In 2017, the Financial Conduct Authority (FCA) put a regulation in place stating that insurance companies have to clearly show the amount a customer paid the previous year, alongside the renewal price when sending out policy renewal letters. Policy renewal letters also have to encourage policy holders to shop around with other companies for the cheapest price. These rules were put in place in order to protect customers and show them how much their costs have risen over the course of a year.
However, the RAC breakdown assistance company could be forced to pay out over £1 million to consumers who say that their previous year’s premium was not prominently displayed on their renewal letter.
Breakdown recovery customers are often enticed to buy coverage with low prices and deals, only to find that their premium prices doubled in the second year. The FCA put these rules in place in 2017 in order to help encourage transparency and help consumers to find the best price possible for their budget.
In regards to RAC, Jonathan Davidson, an executive director of supervision at the FCA said, “It is simply unacceptable to see that some firms are still not being properly transparent with their customers a year on from the introduction of the rules,” according to the Guardian.
The RAC states that all of the correct information was in place on the renewal letters, but that it might not have been as prominently displayed as it should have been.
Finding Trustworthy Insurance
This whole controversy really brings the idea of honest insurance to the fore. One of the most important, but sometimes most difficult aspects, of finding good insurance is finding trustworthy insurance.
One of the most important aspects of the insurer-insured person relationship is trust. If you as a consumer can’t trust your insurer, why would you trust them with everything from your car policy to your life insurance policy?
Customers are placing their trust in their insurance companies, and that trust should be rewarded by providing the best insurance possible.
Trust and honesty are key when looking for insurance. Without trust, there’s no deal. It is part of a two-sided relationship: the person looking for insurance has to be sure to do their due diligence and shop around for the best offer for their needs, and the insurer has to be sure to provide them with all proper information, costs, etc.
Once trust is established between the two parties, it should then be easy to continue that trusting relationship, as long as there are no major surprises along the way. When a customer uses QuoteSearcher, we hope to not only get you the best deal possible on your insurance, but also want to provide you with the most trustworthy insurers possible. When you use our services, all you have to do is fill out one form, then we connect you to trusted brokers who compete to give you the best price on your breakdown insurance.