Research carried out by Rnwl showed that it is very difficult for UK motorists to cancel policies with around 31% of motor insurers, including some major household names. Rnwl is a new app that helps users buy, manage and cancel insurance policies and reminds users to keep MOTs, vehicle tax and insurance up to date with minimal ‘life-admin’ hassle.
From January 2022, the Financial Conduct Authority (FCA) Handbook’s principles will require insurers to make it as easy to cancel as it is to buy a policy. However, some might still make it difficult to find cancellation details.
It’s even more vital that drivers can cancel their car insurance renewals in the coming weeks or face wasting hundreds of pounds: from January the FCA has also ordered insurers to stop charging existing customers more than new ones when they renew policies. However, many risk being overcharged ahead of the changes, particularly if they are prevented from cancelling policies.
Rnwl includes a feature that directly connects to quick online cancellation facilities for insurers. Thanks to the tenacity of Rnwl’s people, who have tracked down ‘hidden’ links on insurers’ websites, Rnwl users can cancel policies online conveniently instead of conducting lengthy searches on insurers’ websites. However, it cannot help yet with the 31% of insurers who do not provide any online options and it is hoped that forthcoming FCA rules will rectify this.
Research by comparison website Compare The Market found that people could pay more than £450 as a ‘loyalty penalty’. Half the households surveyed saw their insurance premiums increase when sticking with their existing provider, or being unable to cancel, at renewal in the past 12 months by an average of £81.
The FCA handbook’s forthcoming rules on auto-renewal states: “A firm must provide a consumer with easy and accessible methods for cancelling the automatic renewal feature in the consumer’s contract.” And: “The methods provided by a firm… …must include at least all the methods by which a consumer is able to purchase a new policy with the firm.” Companies make it really simple for people looking to buy with ‘get a quote’ buttons peppered over the website and easy online sign-ups. But when they want to cancel, the information is hidden away in a dark corner and customers are forced to call them.
Goncalo de Vasconcelos, founder and CEO of Rnwl, said: “The lengths some motor insurers will go to prevent customers moving is not acceptable. When I tried to stop my own car insurance auto-renewal the only option I was given was to accept the 66% increase in cost. To stop auto-renewal I had to find a phone number, buried deeply in the site, then call the insurer and make seven menu selections before I could cancel and save some money.
“This has affected so many people that I founded a business based on cancelling motoring insurance policies and finding better deals. Add to this avoiding huge fines for forgetting to pay your car tax or getting your MoT then Rnwl has to be one of the greatest stress-avoidance and money-saving apps available anywhere.”
Rnwl can be downloaded free from the Apple App Store or Google Play. It enables users to cancel motor insurance policies and find better deals quickly, see car renewal dates in one place, act upon them just by providing a vehicle’s registration number and get help in the event of a breakdown. ‘Rnwl puts your insurance world at your fingertips’.