CHEAPER CLASSIC CAR INSURANCE RENEWALS?

Shopping around for cover after receiving a jacked up classic car insurance renewal quote is all too common in the historic vehicle world.

Earlier this month, an agreement between two insurance regulators – the Association of British Insurers (ABI) and the British Insurers Brokers Association (BIBA) – was reached with the hope of curbing ‘excessive differences between new customer premiums and renewals’.

ABI and BIBA’s joint ‘Guiding Principles and Action Points’ (GPAP) document wants insurance firms to stop chasing new customers at the cost of existing clients; at the very least, the GPAP will oblige insurers to warn customers that their upcoming renewal will cost them more than if they were new to the firm. Both bodies expect GPAP to take effect by 2020 when a review will analyse its effectiveness. It’s hoped that the Financial Conduct Authority (FCA) will also get involved long-term monitoring the price of premiums.

Motor, travel and home insurance will lines will be protected by GPAP, but not pet or personal insurance products.

GPAP gives ABI and BIBA the power to take action against firms who unfairly penalise long-term customers – especially if the renewal quotes for those loyal enough to stay insured with one firm for five years or more rise unreasonably.

ABI Chairman Andy Briggs concluded: “The renewal market simply doesn’t work where loyal customers get charged much more than new customers. Given many consumers expect to get cheaper insurance when they shop around, there is no easy solution. These new Guiding Principles and Action Points are a positive initiative by the ABI and BIBA members to demonstrate that the whole industry recognise this is an important issue that needs to be addressed.”