VAN INSURANCE NEWS ROUNDUP: 7 DAYS ENDING 27 MARCH 2015:
Having to untick add-ons when it comes to taking out new car insurance or van insurance cover will soon be at an end thanks to the Financial Conduct Authority.
If you’re like me, you’re probably well good and tired with having to constantly make sure you’re not getting stuck paying for unnecessary addons for your personal or commercial van insurance cover every time you switch insurers or renew your cover for another year. Insurance companies just love to try to sell you bundled add-ons at an additional cost, and they make it hard to avoid them by pre-ticking them on premium applications; you usually have to go through and un-tick them all so you can opt out of extra, unneeded cover to get the best rates.
Well, the practice is soon to come to an end, thanks to the FCA, which has plans to ban the practice. The watchdog discovered that around 20 per cent of people don’t even know they’re getting superfluous, extraneous and often expensive add-on cover because most of the time they’re simply looking at the main product they’re interested in. Not only that but the FCA found that more than £100 million a year is being wasted on these so-called opt-out selling practices.
If you ask me, it’s high time that someone put a stop to this practice. There’s no reason you, nor I, nor anyone else should have to go through insurance agreements with a fine-toothed comb to make sure none of those little boxes are ticked simply because an insurer or an insurance comparison site is trying to maximise their incomes, regardless of the actual value of the add-on cover or services. I’m not saying that you may benefit from breakdown cover, especially if you spend an inordinate time out on the road because of your job or something like that; the fact is that it should be an informed decision on the consumer’s part and not the result of a tricky little game being played by an insurance provider.
So at any rate, at least the practice will be short-lived. Just hold on a bit longer and you won’t have to worry about that any longer at least!