Direct Line Group has agreed to pay customers up to £30m after some were charged more than they should have been for car and home insurance. The Direct Line Group has been instructed to conduct a review of all affected customers and provide 'appropriate redress' in instances where customers have been overcharged. Legislation was introduced by the Financial Conduct Authority (FCA) on 1st January 2022 that meant existing customers who had been with their insurer for more than a year, should not be charged more than a new customer.
The insurance group says that an "error" in implementing the new rules resulted in some customers paying higher renewal fees than they should have done and that they are working hard to reimburse affected customers. If you renewed your car or home insurance with Direct Line, Churchill or Privilege - all part of the Direct Line Group - after 1st January 2022, you may be due a refund.
Additionally, a separate review issued by the FCA in June could also mean that customers who made a claim for a written-off vehicle with one of the aforementioned companies between 1st September 2017 and 17th August 2022 could also be entitled to a refund after not receiving as much as they should have.
In this article, we explain who may be eligible to receive a refund from the Direct Line Group, how to get a refund and if you're looking for a new policy, how to get the best deal on your car or home insurance.
Who is eligible for a refund?
Customers who renewed a car or home insurance policy with Direct Line, Churchill or Privilege since 1st January 2022 may be eligible for a refund if they were sold a policy that was higher than it should have been. Those who renewed a policy but have since swapped insurers may also be eligible for a refund and will be contacted using details held on file.
Additionally, customers who made a claim for a written-off vehicle between 1st September 2017 and 17th August 2022 may also be eligible for a refund after not receiving as much money as they should have.
How to get your Direct Line Group car or home insurance refund
Affected Direct Line, Churchill and Privilege car and home insurance customers will be contacted directly by the insurers if they are due a refund. Direct Line Group insurers say they are working hard to identify those who are affected and 'will contact affected customers directly to put things right'.
How to get the best deal on your car or home insurance
Shopping around is one of the quickest and easiest ways to get the best deal on your car insurance* or home insurance* policy. This is because you can compare a number of providers at once to find out if you are getting the best deal. One of the easiest ways to do this is by using a comparison site such as Quotezone* as it allows you to look at a number of providers at once. However, comparison sites aren't always whole or market and you therefore may be able to get a better deal elsewhere or directly with an insurer. Additionally, some insurers such as Direct Line, do not feature on comparison sites, so you would need to visit the insurer directly in order to compare quotes.
Alternatively our articles, 'Best car insurance in the UK' and 'Best home insurance in the UK' compare some of the best car and home insurance providers. And we also share a number of money-saving tips in the following articles:
If a link has an * beside it this means that it is an affiliated link. If you go via the link, Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. The following link can be used if you do not wish to help Money to the Masses or take advantage of any exclusive offers - Quotezone
Book a free financial review
Looking to ensure your finances are on track? Our partner Unbiased will arrange for a qualified, FCA-regulated adviser to contact you
- Discuss your financial situation
- Identify what steps, if any, you should take
- Free and without obligation
