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Auto and home insurers are allowed to charge existing customers more than newbies when fighting loyalty penalties

The new rules will go into effect January 1, 2022 and the Financial Conduct Authority (FCA) estimates they will save people a total of £ 4.2 billion over 10 years, even though that means insurers won’t be super cheap Deals can offer more to new customers.

Currently, many insurers are increasing renewal prices for existing customers each year in a process known as price walking. This means customers have to shop and switch every year to stop paying for their loyalty. In 2018, 6 million policyholders could have saved a combined £ 1.2 billion if they had paid the average price for their actual risk, according to the FCA.

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