As of midnight January 14, thousands of motorists were uninsured – despite paying for their insurance policies.
Money Saving Expert’s Martin Lewis has warned drivers that after the collapse of a major insurer, 105,000 British citizens will no longer be able to legally drive their vehicles on public roads, the Manchester Evening News reports.
People with car or truck insurance have been hit hardest by the collapse of the MCE Insurance Company, Mr Lewis explained on the Martin Lewis Money Show.
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He said: “MCE Insurance Company, which was one of the UK’s largest motorcycle insurers, will cancel all of its 105,000 remaining policies after falling into administration last year.
“The move comes despite the insurer originally promising to cash in on existing coverage.
“For policies purchased prior to November 9, 2021, the reorganization means car or van coverage will end at midnight on January 14, 2022.
“Coverage for motorcycles or scooters ends at midnight on January 31, 2022.”
Mr Lewis urged drivers to agree on a new policy “quite sharply”.
He said those with car or van insurance with the company were “particularly” affected.
But he warned that drivers will get “most” of the money back for unused months under a government refund scheme.
Speaking on his show, he said: “I’m afraid MCE is canceling 105,000 policies because it’s going broke.
“If you got your policy before November 9th, you’ll have to arrange a new one pretty sharply.
“Especially if you have car or van insurance.”
The government-backed Financial Service Compensation Scheme (FDCS) pays you back 90 percent of your prorated refund for unused months.
