As Churchill would say Oh yess..
We have done some research recently and have always found Direct Line costs around £300 to £400 more per annum for an insurance policy. We recommend using moneysupermarket.com or gocompare.com every time about 3 weeks before your insurance is due.
Direct Line Group, the owner of Churchill, Direct Line, and Privilege, is set to reimburse approximately £30 million to customers of these three brands who were charged more for renewing their home or car insurance compared to what they would have paid as new customers, violating Financial Conduct Authority (FCA) regulations. In the following sections, we will detail what led to this situation, who it affects, and how refunds will be processed.
If you are considering renewing or purchasing a new insurance policy, we recommend consulting our Home insurance and Car insurance guides for valuable insights. You can also refer to our guide on factors influencing your car insurance quotes.
Direct Line Group’s Overcharging of Renewing Customers:
Starting on January 1, 2022, the FCA prohibited home and car insurance providers from imposing higher renewal prices on existing customers than what they would charge new customers for the same policy. Prior to these regulations, many insurers raised prices for loyal customers, a practice known as the ‘loyalty penalty.’
Direct Line Group has acknowledged an error in implementing these regulations across its three car and home insurance brands, resulting in some customers paying higher renewal rates than they should have.
At this stage, the exact number of affected customers remains unclear, although Direct Line Group asserts that the majority of those experiencing premium increases were not overcharged. The insurer is currently reviewing all home and motor insurance renewals made since the implementation of the FCA rules.
It’s important to note that Green Flag, also under the Direct Line Group umbrella, exclusively offers breakdown cover, which is not subject to the FCA’s renewal pricing rules. Consequently, Green Flag customers are unaffected by this error.