Car insurance renewal documents could soon become even clearer, thanks to new minimum standards proposed by the Association of British Insurers (ABI).
The ABI has written to the Financial Conduct Authority (FCA) and suggested that car insurance renewal documents should show the customer the premium they paid the previous year as well as the new quote they've been given by their insurer, reports rac.co.uk. This will make it easier for them to compare the two.
Moreover, if the customer enjoyed any special introductory benefits or discounts in the first year, it should be made clear to them that these have now expired and will no longer apply, reports telegraph.co.uk.
Some 89 per cent of people said they would benefit from seeing how much they paid for their insurance the previous year, according to the ABI.
Huw Evans, deputy director general of the ABI, commented: "Most of us have home or car insurance and it is important we have the information we need when it comes to renewal. Our proposal, if adopted by the FCA across the market, would significantly improve transparency for millions of customers."
The FCA has already been looking at ways to improve the information displayed in renewal documents and says it will report on its work in 2015. However, it does encourage insurers to come up with new ways to improve its renewal information in the meantime.