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Chronicle Live
National
Catherine Furze

Martin Lewis warns thousands of drivers have lost their insurance overnight without realising

Car owners are being warned to check their insurance policy, amid fears that thousands could be driving around uninsured.

The collapse of a motor insurance company has meant that drivers could have lost their cover overnight, despite having paid for policies.

Money Saving Expert Martin Lewis has issued the warning to thousands of drivers in the UK, after MCE Insurance Company cancelled some of its car and van policies at midnight on January 14.

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The cancellation affects policies taken out prior to November 9 2021, and cover for for motorbike or scooter insurance will end at midnight on January 31, 2022.

"MCE Insurance Company, which was one of the UK's biggest motorbike insurers, is to cancel all of its 105,000 remaining policies after falling into administration last year" said Martin.

“The move comes despite the insurer initially promising to honour existing cover."

Speaking on the Martin Lewis Money Show, Mr Lewis urged drivers to arrange a new policy “pretty sharpish”.

However, he reassured drivers that they will get most of the money back for any unused months, thanks to a Government refund scheme.

The Financial Service Compensation Scheme (FDCS) will pay 90 percent of your pro-rata refund for unused months, and will also pay you at least 90 percent if you have a legitimate outstanding claim with the company.

The Financial Conduct Authority (FCA) confirmed MCE had entered administration back in November.

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