New rules on motor insurance pricing come into force
New rules to improve transparency on motor insurance pricing are coming into force.
From today, the Central Bank rules will force insurance companies to provide more detail to customers when they are being sent motor insurance renewals.
When a consumer receives their motor insurance renewal, their insurance company is obliged to inform them what the premium was last year.
They must also give an upfront comparison.
Insurance companies will also have to provide the cost of different levels of cover – meaning consumers will receive several quotes.
These will include one for comprehensive, another for third party fire and theft, and one for third party only cover.
Insurance providers will also need to give consumers 20 days notice of the renewal – up from the previous 15 days – giving consumers more time to shop round.
The changes stem mainly from a Government working group on the cost of insurance.
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