You are using an older browser version. Please use a supported version for the best MSN experience.

Breakdown firms hide price hikes at renewal: Thousands of AA and RAC customers not being told when their premiums change

Daily Mail logo Daily Mail 22/01/2019 Fiona Parker For The Daily Mail
Ashford, UK - February 5, 2012: An AA breakdown vehicle of the Automobile Association (the AA) heads under a motorway bridge. Heavy snow has fallen overnight. Two lanes of the three on the M20 are open. At the top is the exit slip road. © GavinD Ashford, UK - February 5, 2012: An AA breakdown vehicle of the Automobile Association (the AA) heads under a motorway bridge. Heavy snow has fallen overnight. Two lanes of the three on the M20 are open. At the top is the exit slip road.

Breakdown cover customers are being sent renewal letters that do not spell out how much their premiums have risen.

In April 2017 the City watchdog introduced new rules that forced insurers to print clearly the previous year's premium on policy renewal letters.

It was hoped this would stop loyal customers being ripped off by price hikes and encourage them to shop around. 

a car parked on the side of a road: In April 2017 the City watchdog introduced new rules that forced insurers to print clearly the previous year's premium on policy renewal letters © Provided by Associated Newspapers Limited In April 2017 the City watchdog introduced new rules that forced insurers to print clearly the previous year's premium on policy renewal letters

But it has emerged that the rules only apply to policies that last longer than ten months.

This means that thousands of AA and RAC customers who pay for breakdown cover on a month-by-month basis are not being told when their premiums change or what they paid previously. 

You may also like:

The UK's best cars [What Car?]

These cars just sold for £32 million! [Claasic & Sports Car]

The best brand new car is an electric Kia [Daily Mail] 

The Financial Conduct Authority (FCA) said it was looking into the matter.

Experts say customers should make a note of what they pay to ensure they know to challenge any increases.

BATH, UNITED KINGDOM - MARCH 02:  A RAC patrol man stops to take a photograph of his van as vehicles attempt to drive through drifting snow that has formed on the A46, the main motorway link road for Bath to the M4, on March 2, 2018 near Bath, England. Weather fronts dubbed Storm Emma and The Beast From The East have combined to create freezing conditions that have bought much of the UK to a standstill. Businesses have closed, some towns are inaccessible and flights have been cancelled costing the British economy millions of pounds.  (Photo by Matt Cardy/Getty Images) © 2018 Getty Images BATH, UNITED KINGDOM - MARCH 02: A RAC patrol man stops to take a photograph of his van as vehicles attempt to drive through drifting snow that has formed on the A46, the main motorway link road for Bath to the M4, on March 2, 2018 near Bath, England. Weather fronts dubbed Storm Emma and The Beast From The East have combined to create freezing conditions that have bought much of the UK to a standstill. Businesses have closed, some towns are inaccessible and flights have been cancelled costing the British economy millions of pounds. (Photo by Matt Cardy/Getty Images)

A spokesman for the RAC says: 'We comply fully with our regulatory responsibilities. 

'These require insurers to display the previous premium adjacent to the renewal quote for annual policies of ten months or more.'

An AA spokesman says: 'The previous year's premium is not on correspondence for continuous monthly memberships, which are not subject to the FCA's regulatory requirements for annual policies.'

Gallery: Revealed: What Car? Awards 2019 - the UK's best cars [What Car?]

AdChoices
AdChoices

More From Daily Mail

image beaconimage beaconimage beacon