The Money Saving Expert explained that more than 100,000 of their policies had to be canceled because the MCE Insurance Company filed for bankruptcy last year
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Martin Lewis warns motorists about insurance
Martin Lewis has warned some drivers may find their car insurance void at midnight.
The Money Saving Expert founder said many drivers are no longer insured as of tonight – despite policies being paid for.
Speaking on the Martin Lewis Money Show, he explained that more than 100,000 of their policies had to be canceled because the MCE Insurance Company filed for bankruptcy last year.
He said those with car or van insurance with the company were “particularly affected”, reports the Manchester Evening News.
Martin 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.
Money saving expert Martin Lewis has warned thousands of drivers in the UK they may not be insured after midnight tonight
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“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.”
He urged drivers to agree on a new policy “quite sharply”.
But he warned that drivers will get “most” of the money back for unused months under a government refund scheme.
The Money Saving Expert explained that the policies had to be canceled because the MCE Insurance Company filed for bankruptcy last year
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He said: “Motorcycle insurer MCE is sadly canceling 105,000 policies because it’s going bust.
“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.
You won’t get everything, you will get most of it.
Martin says if you got your policy before November 9, you’ll have to arrange a new one “pretty sharply”.
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If you have an existing eligible claim, they will pay you at least 90 percent of your payout, depending on the circumstances.
The Financial Conduct Authority (FCA) confirmed that MCE had entered administration back in November.
They previously said: “On 19 November 2021 the company was placed under administration following an application for administration to the High Court of Gibraltar.
“Andrew Stoneman and Geoff Bouchier of Kroll (Gibraltar) Limited have been appointed joint administrators of the Company.
“The company stopped writing new insurance on November 5, 2021, mainly writing motorcycle and car insurance policies specifically for UK customers.
“Existing insurance policies remain in force and are valid.
“If you are a policyholder of the company, your policy will continue to be administered by British broker MCE UK.”
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