Martin Lewis warns drivers to check their car insurance as policies may be invalid
Martin Lewis has warned drivers to check their car insurance as thousands may discover their policy is now invalid.
The Money Saving Expert founder said that because MCE Insurance Company fell into administration last year, more than 100,000 of its policies had to be cancelled.
As such, some drivers may not find they are no longer insured, despite having paid for policies.
When do MCE insurance policies end?
Mr Lewis warned that motorists with car or van insurance with MCE were “especially” affected by the company going bust, with cover from policies ending this month.
For insurance policies taken out before 9 November last year, car or van insurance cover ended at midnight on 14 January.
Cover for motorbike or scooter insurance policies taken out before 9 November will end at midnight on 31 January.
Speaking on the Martin Lewis Money show, he 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.”
MCE customers whose policies cease this month should now have been contacted.
Mr Lewis urged drivers to arrange a new insurance policy “pretty sharpish”, particularly those who have car or van insurance.
He said: “Motorbike insurer MCE is, I'm afraid, cancelling 105,000 policies because it’s going bust.
“If you got your policy before November 9, you will need to arrange a new one pretty sharpish.
“Especially if you've got car or van insurance."
Will policy holders get a refund?
The Money Saving Expert said that drivers with outstanding policies taken out before 9 November 2021 will receive partial a refund as part of the government-backed Financial Service Compensation Scheme (FSCS).
In line with the scheme, affected customers will be given a pro rata refund of 90% of any unused months remaining on their policy.
Customers are not required to do anything to claim this, as a cheque from the FSCS should come in the post.
Those who have taken out MCE policies since 9 November 2021 are not affected as their insurance is underwritten by Sabre Insurance Group, not MCE.
Customers who have any questions about getting a refund can contact MCE via the firm’s live chat tool.
Alternatively you can email [email protected] or call 0193 335 1361.