You are here: Home - Insurance - News -

Opt-out selling of add-on insurance products banned from today

0
Written by: Paloma Kubiak
01/04/2016
From today, you’ll no longer be automatically opted in to add-on insurance products as the financial regulator has banned the practice.

‘Opt-out selling’ is the practice of pre-selecting products for customers to buy which they then have to opt out of if they don’t want to proceed with the added extra.

Examples include separate baggage cover on a travel policy, accidental damage on a home insurance policy or a title insurance sold in addition to a mortgage.

Last year a market study by the Financial Conduct Authority (FCA) found consumers were overpaying for add-ons by as much as £200m per year and many were unaware that they’d signed up for them in the first place.

As a result, it decided to ban the practice of opt-out selling across general insurance products and financial services.

For consumers who’ve already bought products which included add-ons, the FCA will implement ‘transitional rules’ where firms will need to inform customers at renewal that the added product is optional and that they don’t need to take it out.

The FCA expects competition in the industry to increase as a result of the price transparency.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
60 second news round-up: the top money stories of the week

Missed this week's big money stories? Here's our one minute summary of the key facts and figures from the last...

Close