Thursday, 12 June 2014

Insurers still under the spotlight with the sale of add-ons

The Competition and Markets Authority (CMA) - (previously the competition commissioner) has advised of some of their early findings and recommendations that arise from their review of the "dysfunctional" way the motor insurance market operates.

Their full report with recommendations is expected this September after further consultation.

The watchdog has informed the Financial Conduct Authority (the governing body of the insurance industry) to look at how insurers inform their customers about motor add-on products.

A common motor insurance add-on product is motor legal protection insurance (MLP) or legal expenses insurance (LEI)

Alasdair Smith, chair of the private motor insurance investigation group and CMA deputy panel chair, said: "There are over 25 million privately registered cars in the UK and we think these changes will benefit motorists who are currently paying higher premiums as a result of the problems we've found."

Smith concluded: "We also find that the way motor insurance-related add-on products are sold makes it hard for customers to obtain the best value.
"We would like the FCA, as part of its on-going work looking at add-ons across all insurance products, to consider how drivers could be better informed in making their choices."

Free Motor Legal welcome these findings and recommendations as they will drive a better deal for consumers and also make them better aware of what products exist and make them better informed to make a decision whether to purchase an add-on, such as motor legal protection. For too long insurers have simply specified motor legal protection by default, requiring the customer to "opt out" of having the additional cover, usually priced at around £30 per vehicle/ policy.

The FCA has previously wrapped the knuckles of insurers for this practice, the price comparison sites in particular and they are now told that a customer has to "opt in" to such additional cover, rather than it appear as a default.

Free Motor Legal also believes that the way the add-ons are sold, typically packaged in at the point of sale of the main motor insurance policy, has often lead to people just agreeing to go along with the cover, rather than looking for a stand alone solution.

There are now more stand alone providers of motor legal protection in the marketplace, but they charge for the product and some of them even still want a deduction to be taken from the customer in the event they make a compensation claim when using the appointed lawyers.

Free Motor Legal members do not get charged for joining and if they pursue an injury claim, they keep 100% of their compensation - Guaranteed! No deduction from compensation and no "success fee" charged.

People still ask the question, "do I need motor legal protection?" We say, no you don't, but you do need Free Motor Legal

Wednesday, 11 June 2014

Who you gonna call?

Over the last few months we have been helping many of our members following non-fault collisions. Sometimes there are members who have contacted their insurers before calling Free Motor Legal.

This results, all too often, in the member being asked to pay their policy excess and then they need to claim this back by using their Free Motor Legal membership. We are quite happy to assist any member in this situation, but we have a better solution. Call us first!
By calling our freephone number 0800 144 44 88 to report the incident to our 24 hour claims team, you can often side-step the need to use your own insurance cover and this means you can avoid being placed out of pocket and having to pay any excess or other costs. Of course you still need to inform your insurer of the incident as your policy terms & conditions will require you to do this, but you can notify them of the incident "for information purposes only" after you have reported the claim to our claims line. 
Being a member of Free Motor Legal is all about getting the best post-accident service without having to pay any fees or expenses, so why put yourself in a position of having to pay your excess when this can be avoided in a great many situations?
Here is what some of our members have said recently after their claims were dealt with by our team.
"I would recommend Free Motor Legal to anyone as I already had this cover with my current insurer but they didn't even try to help" Mr M – Pontypridd
"I would just like to thank you for the fabulous service I have received - after all I have been through you have provided an excellent service and brought this to a resolution in a very short period of time" Mr N – Musselburgh
You have already made the smart move of saving yourself money year-on-year by becoming a member of Free Motor Legal, many are still to discover the new way of protecting themselves from unnecessary annual insurance costs, so make sure you use your membership for the full benefit you can receive by calling our 24 hour claims line first after a collision, we may be able to help and save you any further expense
We are not just there for repairs to a damaged car or bike. If you or any passengers in your vehicle are injured, we can arrange for treatment such as physiotherapy at the outset. Yes we will make sure that our specialist lawyers obtain you the maximum amount of compensation with no deduction being taken from your settlement, but rubbing your neck with £20 notes will not get rid of what can be a pretty unpleasant and intrusive injury, will it?
You have subscribed to what we feel is the best all round accident care package and this is free of charge. Why not use the benefits of your membership?
The insurance industry continue to charge for motor legal protection products and as long as people will keep paying for them, the insurers will continue to sell what we feel is an unnecessary and outdated product. It is boom time again for insurers, with record profits being announced, and they are only too happy to charge you £30 on top of your motor premium to essentially sell your details on to their business partners after an accident. You have already escaped the madness of buying motor legal protection, now make sure your friends and family don’t continue to fall for these tactics.

Visit our website at or take a look at our Facebook page and "like" and "share" our page so that your friends and family can also discover the way to save money on each vehicle they insure in their household.

Until next time, happy motoring and enjoy what will hopefully be an excellent summer.