Best Price Financial Services welcomes FCA ban on pre-ticked insurance add-ons
Online discount financial services broker, Best Price Financial Services has welcomed the announcement that the Financial Conduct Authority intends to ban the pre-ticked selling of insurance “add-ons” across a number of industries including motor legal expenses insurance and breakdown cover as part of a car insurance purchase.
The FCA found that about one in five people do not even realise they are buying these add-ons because they are focused on buying the main product. It estimated that opt-out selling – where consumers are defaulted into buying a product – wastes consumers more than £100m a year. These proposals will help ensure that consumers are in a better position to decide if they require these extras.
Best Price Financial Services operations director, Mal Evans, commented: “Insurance companies have long been making very high margins on some of these products, often without consumers fully understanding the scope and benefit of the product, even on those occasions when the buyer knowingly purchases the add-on. On the other hand, when people opt out, it can be because they are put-off by the high price. This is a shame because having insurance such as motor legal expenses insurance can make all the difference to people in the event of an accident.”
Best Price Financial Services gives consumers the option to buy motor legal expenses insurance, also known as motor legal protection, on a stand-alone basis. The company’s standard package includes up to £100,000 of legal cover, unlimited vehicle hire for a non-fault accident, personal injury cover, recovery of uninsured losses and a 24-hour helpline. All this is provided for an annual premium of just £9.99, saving consumers around £25 when compared what they would typically pay if the same cover was bought as add-on to their car insurance purchase.
Mr Evans concludes: “We hope the publicity given to this ban will highlight the issue to consumers and make them more aware of their options. We don’t want consumers not to buy these products but to instead buy them in a more informed way. We hope it encourages consumer to shop around for quality and, potentially, more affordable, stand-alone alternatives rather than simply buying on auto-pilot through their car insurer.”
For more details on motor legal protection and the level of cover available please visit motor-legal-protection.
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Notes for editors
Discount Broker, Best Price Financial Services (www.bestpricefs.co.uk) is a leading financial services supplier specialising in motor legal protection, life insurance, income protection, and other premium investment products. Best Price FS was launched in 2013 by South Wales-based independent financial advisor Richard Harry, following a substantial personal investment and a £200,000 grant from the Welsh Government.
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