Insurer Admiral has been supplying customers with inaccurate information on their renewal documents by publishing higher past premiums than were actually paid, the Financial Conduct Authority (FCA) has found.
In April, all insurers were forced to publish last year’s premium on insurance renewal letters, to help people work out if their premium had increased and help them find a better deal.
Which? has been campaigning for this to happen since 2014.
Renewal documents Admiral sent to its customers showed the premium they were quoted last year – but did not take into account any discounts that were applied, and how much was actually paid.
As a result, some customers were given inaccurate information, making it difficult to weigh up their renewal rate against previous payments.
The FCA found this breached the new rules it had introduced just two months ago. People who are affected now have the option to switch insurers without penalty.
I’m an Admiral customer – what now?
Admiral has agreed to contact all customers who renewed after 1 April 2017 and provide the correct information, in line with FCA rules.
If you were given the wrong information, you’ll be allowed to decide whether to stay with Admiral, or switch to another insurer.
Should you decide to make a switch, you’ll be able to cancel your Admiral policy without penalty and have your premiums refunded.
Find out more: How to renew your car insurance
What do insurers need to include in renewals?
In April 2017, the FCA tightened its regulations, bringing in new rules around what insurers need to tell their customers when renewing.
Under the new rules, insurers must disclose last year’s premium at each renewal so that consumers can make an informed decision. In addition, insurers must include text encouraging consumers to shop around and check their cover, especially where someone has renewed four consecutive times.
The changes were announced in August 2016, with insurers given until April 2017 to implement them.
The industry has largely adopted good practices but the FCA has also noted some ‘concerning examples’, it said in a statement. The FCA has committed to monitoring implementation of the new scheme and promised to take action where necessary.