Car Insurance Prices Soar by £279! Expert Martin Lewis Spills the Secrets to Avoid Overpaying
Martin Lewis Exposes Hidden Law on Insurance Prices
Martin Lewis, the Money Saving Expert, has dropped a vital bombshell for drivers hunting for new car insurance deals. Recent research reveals average premiums have jumped by £279 in just 12 months, but Lewis says you could pay less by knowing your rights.
“If you buy a policy, they are legally obliged to reduce it to the price they were offering to new customers,” he declared. The law forbids insurers from charging existing customers more than newbies buying through the same channel.
The Loyalty Penalty Law: What You Must Know
Lewis highlighted the “loyalty penalty” ban, which protects customers from being penalised for sticking with their insurer. He explained: “The law says, as an existing customer, you should not be charged more than a new customer who went through the same channel as you.”
This means you must demand the same deal as newcomers or switch to save serious cash.
Insurance Costs Skyrocket, Young Drivers Hit Hardest
Speaking at the Ideal Home Show, Lewis warned drivers to understand the fine print in insurance policies. The timing couldn’t be worse as Compare the Market reports a hefty rise in average premiums, blaming climbing claim costs.
Young drivers under 25 have been slammed hardest, with costs surging by £648 year-on-year – pushing typical premiums to a staggering £2,057 in February 2024.
Expert Tips: Shop Around or Pay Up
Julie Daniels from Compare the Market urges motorists not to stick blindly with the same insurer year after year. “Shopping around for the best deals is crucial to avoid overpaying,” she advised.
With insurance prices on a relentless climb, Martin Lewis’s advice is crystal clear: be savvy, compare prices, and never pay a penny more than you have to.
