A UK money-saving expert has urged car and home insurance owners to see if they can get a cheaper deal ahead of massive rule changes set to take place in just two days time.
Martin Lewis has warned of new measures being brought in on January 1, which will end the notorious 'loyalty penalty' to save Brits an estimated £4.2b over the span of ten years.
Said penalty is where longstanding and loyal customers face higher dividends compared to those who regularly switch provider, The Mirror reports.
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While newer customers typically get cheaper deals on insurance, with firms using lower premiums to draw more business in - the re-jig will end said practice, meaning existing policy holders will be on level grounds with new customers.
However, while the rule change comes as fantastic news for loyal customers, money saving experts have revealed that not everyone may end up paying less for their insurance.
MoneySavingExpert founder Martin predicts that it could mean the end of cheap new switcher deals - and is urging all insurance customers to check if they can bag a new deal now, before the changes come into play.
Writing on his website, he said: “My best guess is firms won't just cut renewal prices to match those for newbies - rates will meet nearer the middle (as happened in 2012, when insurers were barred from gender price discrimination).
"This will mean savings from switching will likely relatively reduce.
“It was possible insurers would have already made price changes knowing this was coming.
“Yet I've heard many waited until December to see what their competitors do - a 'who jumps first' strategy - especially as we're near the year end, a time they really want to acquire new customers (prices already dipped in November).”
He continued: “Unless you've done all the checks in recent months, TRY NOW to see if a cheaper switchers' deal is available before the new rules hit, in case prices rise after, as then if you get the policy you'll have locked in the price before the new rules hit.”
How do I lower my home or car insurance?
Regardless as to whether or not you're due to renew your existing insurance policy, you may still be able to save money by comparing premiums right now.
It's usually possible to cancel a current policy, although those who do so may be charged a one-off admin fee for doing so - policies should always be checked carefully to check what is still owed back and how much it costs to leave your insurer to avoid nasty fines.
However, if you have found a cheaper deal elsewhere, and you would be better off by switching in the long run despite an admin charge for cancellation - it may pay off to switch provider.
Comparison sites are incredibly helpful to check prices elsewhere, and those interested in switching insurance should always check multiple sites before making the change, as some providers won't be covered by all comparison firms.
Some of the most popular ones include CompareTheMarket.com, GoCompare.com and Confused.com.
MSE says that 23 days before your car insurance is due to expire is the sweet-spot for finding the cheapest deals, where as with regards to home insurance, you should check 21 days in advance.
Multi-car deals could also end up saving you cash in the long run if your current household has more than one car, and legitimately tweaking your job title on your car insurance could also lower your costs.
However, you should never lie about your job title as you could risk being accused of fraud and have your policy cancelled.
Finally, many insurance firms offer cashback schemes on car or home policies, and sites such as Topcashback and Quidco will reveal as to whether you are eligible to claim.
If you're happy with your current insurance provider, you can also still try haggling for a lower price over the phone of online.
Check if there are cheaper deals out there, then call your provider up and ask if they can match it - if they can, fantastic! If not, it might be worth weighing up your options and seeking insurance elsewhere.
