RAC accused of hiding 37% rise in breakdown cover

Policy renewal letter did not mention annual premium increase, says one customer, despite it being mandatory

The RAC has been accused of sending out breakdown cover renewal letters with an undisclosed 37% increase in premiums, despite new rules that force insurers to display annual price rises.

Since 2017, insurers have been required to tell consumers in renewal letters how much they paid the previous year to encourage them to shop around. At the time the measure was introduced, the Financial Conduct Authority (FCA) said it would “transfer £100m from firms’ profits” into consumers’ pockets.

I’m surprised it isn’t considered a breach of the FCA rules as nowhere in the letter does it state previous premiums

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Posted by Unknown

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