Direct Line may be the tip of an iceberg of over-charging insurers, says JEFF PRESTRIDGE
Daily MailThe announcement by Direct Line that it will be providing £30million of compensation to customers who paid more for their insurance at renewal than they should have done was not a surprise. Direct Line may just be the tip of a monstrous iceberg. Other insurers are highly likely to be found guilty of similar rule-breaking in the months ahead – and be required to pay redress by the FCA. Direct Line’s crime was to charge existing customers more for their insurance than someone buying identical cover from them for the first time. Other insurers are highly likely to be found guilty of similar rule-breaking in the months ahead At the beginning of last year, the FCA banned such discriminatory pricing because it exploits loyal customers who are quite happy renewing cover with their insurer rather than shopping around for cheaper policies.
History of this topic
Direct Line car insurance available on a price comparison site for the first time
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Direct Line shares surge after insurer rejects £3.3bn Aviva takeover tilt
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