Why has my insurance shot up by 60% this year?

Both my car insurance and breakdown cover are due this month, and both prices have increased by a massive 60%? What on earth is going on?

Asked on 1 May 2020 by Ron

Answered by Dan Powell

This is known as 'loyalty tax' in the industry. It's designed to cater for people who would rather pay more for their insurance and breakdown cover than shop around for a better deal. Email both companies and instruct them that you shall not be renewing.

You can find cheap insurance deals here: www.honestjohn.co.uk/cheap-car-insurance/
And cheap car breakdown cover here: www.honestjohn.co.uk/cheap-breakdown-cover/

Tags: insurance loyalty tax

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