Warning as thousands of drivers could see insurance policies cancelled this week
dailyrecord.co.ukThousands of drivers could see their insurance policies cancelled this week.Martin Lewis is urging motorists to check their policies they may no longer be insured from January 14 - despite having paid for their policies.
The Money Saving expert says this is due to insurance firm MCE Insurance Company falling into administration last year meaning that over 100,000 policies are now void.
Speaking on ITV show Martin Lewis Money Show, the expert explained: "MCE Insurance Company, which was one of the UK's biggest motorbike insurers, is to cancel all of its 105,000 remaining policies after falling into administration last year.“The move comes despite the insurer initially promising to honour existing cover.“For policies taken out prior to November 9 2021, the shake-up means car or van insurance cover will end at midnight on January 14, 2022.“Cover for motorbike or scooter insurance will end at midnight on January 31, 2022.”Drivers are set to receive "most" of their money back for any unused months of insurance.
This is due to the Government's refund scheme. The Financial Service Compensation Scheme (FDCS) which is Government-backed, will pay you back 90 per cent of your pro-rata refund for unused months.You won't quite get it all, you will get most of it.Equally, if you've got an existing legitimate claim, they will pay you at least 90 per cent, depending on circumstances, of your payout.The Financial Conduct Authority (FCA) confirmed MCE had entered administration back in November.The expert is urging those impacted to sort out a new policy as soon as possible.Driving without insurance can result in some pretty serious consequences.The police could give you a fixed penalty of £300 and six penalty points if you’re caught
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