Category Archives: Car insurance

Average cost of UK car insurance rises by one-third in a year, analysis finds

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ABI reports annual jump of £157 in first quarter of 2024 but says 1% increase on previous quarter indicates rises are easing

The average price paid for comprehensive motor insurance in the UK was about a third (33%) or £157 higher in the first quarter of this year than a year earlier, according to figures from the Association of British Insurers (ABI).

Based on analysis of policies sold, the typical price paid in the first quarter of 2024 was £635, marking a 1% increase on the previous quarter, the ABI said.

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Direct Line to pay £30m to overcharged car and home insurance customers

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Company breached rules that state existing policyholders should not be charged more than new ones

Direct Line will pay about £30m to customers who were charged more than they should have been to renew car and home insurance policies.

The UK’s second biggest car insurer said it discovered the overcharging problem after the incorrect implementation of the new pricing practice regulation that came into force in January last year. Under the rules, existing customers should not be charged more than if they were a new customer.

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Direct Line ordered to review five years of car claims after underpayments

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Insurer told to reassess vehicle write-offs to identify any unfair settlements

Britain’s second-biggest car insurer, Direct Line, has been ordered to go back through five years of claims after admitting it had underpaid some customers who had their cars and vans written off.

After an investigation into the car insurance market that began in December 2022, the Financial Conduct Authority (FCA), this week ordered Direct Line to conduct a review of claims where vehicles had been written off “to identify any policyholders who received unfair settlements and provide them with appropriate redress”.

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