Customers of the UK’s “insurer of last resort,” the state-backed pool known as the Motor Insurers’ Bureau (MIB), will soon be required to shop around for coverage. The change, set to take effect in 2022, applies to motorists who cannot find coverage elsewhere due to a poor driving record or other issues. The move is expected to increase competition and drive down costs, as customers will have access to a wider range of insurers.
Customers of ‘Insurer of Last Resort’ Need to Shop Around
The ‘insurer of last resort’ is a term used to describe the role played by certain insurance providers that offer policies to individuals who are unable to secure coverage from mainstream insurers. These customers are considered to be high-risk, and as such, their policies typically come with a higher premium than those offered by mainstream insurers. However, a recent change in the market means that customers of the ‘insurer of last resort’ will soon have to shop around – and it’s all down to a new government initiative.
The Background to the Policy Change
The UK government has launched a new scheme aimed at providing insurance coverage to customers who are at high risk of flooding. The scheme – known as Flood Re – is designed to provide affordable coverage for households that have previously been unable to obtain flood insurance due to their high-risk status. Flood Re provides coverage for damage caused by flooding, but only for the customers of mainstream insurers.
This means that customers of the ‘insurer of last resort’ – which are typically not mainstream insurers – will not be eligible for coverage under the Flood Re scheme. This is because the government believes that the ‘insurer of last resort’ should be focusing on providing coverage to those who are unable to secure coverage from mainstream insurers.
What the Policy Change Means for Customers
Customers of the ‘insurer of last resort’ will soon have to shop around for coverage, as they will no longer be eligible for coverage under the Flood Re scheme. This means that they will need to find a new insurance provider that can provide them with affordable coverage for their high-risk status.
The good News is that there are other insurance providers who offer coverage to high-risk customers, and these providers may be able to offer a better deal than the ‘insurer of last resort’. Customers who are looking for affordable coverage should shop around and get quotes from several different insurance providers to find the best deal.
What to Consider When Shopping Around
When shopping around for coverage, there are several things that customers should consider. Firstly, they should be aware of the level of coverage that they need. This will depend on several factors, including the value of their property and the level of risk that they face.
Secondly, customers should consider the cost of the premiums. High-risk customers can expect to pay more for coverage than customers who are considered low-risk, but it’s important to shop around and compare prices to find the best deal.
Finally, customers should consider the level of customer service provided by the insurance provider. This can be an important consideration, particularly if the customer needs to make a claim.
Conclusion
In conclusion, customers of the ‘insurer of last resort’ will soon have to shop around and find a new insurance provider. While this may be an inconvenience, it presents an opportunity for customers to find a better deal on their insurance coverage.
High-risk customers should consider their options carefully and shop around to find the best deal. They should consider the level of coverage that they need, the cost of the premiums, and the level of customer service provided by the insurance provider.
In the end, finding the right insurance coverage can provide peace of mind and protection against the unexpected. By taking the time to shop around, customers can ensure that they are getting the best deal on their insurance coverage.
