THOUSANDS of policies are now void following the bankruptcy of one of the UK’s largest motor insurers.
Policies from MCE Insurance Company are no longer in effect as of January 14, Money Savers reported, despite promising to honor the company’s 105,000 active policies after it administered last year.
When do MCE policies end?
Martin Lewis, speaking on the Martin Lewis Money Show, explained that people with car or van insurance with the company were “particularly affected”.
He said: “MCE Insurance, one of the UK’s largest motor insurers, will cancel all of its remaining 105,000 policies after falling into administration last year.
“The move comes despite the insurer’s initial promise to honor existing insurance.”
“Motorcycle or scooter coverage will end at midnight on January 31, 2022.”
He urged drivers to arrange a “pretty sharp” new policy.
However, he warned drivers would get “most” of the money back for any unused month as part of the Government’s cashback scheme.
For policies in effect before November 9, 2021, car or van coverage will end at midnight on the 1st. Money saver reported.
Insurance policies for motorbikes and scooters in effect before 9/11 will end at midnight on January 31.
Customers need to find an alternative policy to continue driving their vehicle legally.
At the time of the outage on November 19, MCE had no contact with its customers.
Affected customers with this month’s termination policy have now been contacted.
Can I get a refund?
All MCE policyholders with outstanding policies taken before November 9, 2021 will receive a partial refund.
In line with the Financial Services Compensation Scheme (FSCS), affected customers will be reimbursed at the rate of 90% of any unused months remaining under their policy.
You don’t have to do anything – a check will be sent from the FSCS.
People who have used MCE policies since November 9, 2021 will not be affected as their coverage is covered by Saber Insurance Group, not MCE.
If you have any questions about your refund, FSCS’s online chat service will be able to help.
What should I do if I am having a complaint with the MCE?
You don’t have to do anything – but instead, FSCS will contact you about your MCE request.
That’s because the existing requests have been moved into the plan, which is now processing them.
If your request is valid, FSCS will pay.
And if you need to appeal before your policy is cancelled, contact MCE as soon as possible.
You can do so using live chat tool, email email@example.com or call 0193 335 1361.
When an insurance provider fails, their policies either continue under the supervision of a new insurer or end prematurely.
If your policy ends early, FSCS will protect 90% or 100% of your premium rate until the end of the policy, depending on the terms.
If you are an affected MCE customer and need new car insurance, this is where you can find the best insurance rates.
Drivers of cars and motorbikes have also been advised how to reduce their MOT costs.
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https://www.thesun.ie/motors/8200121/thousands-of-insurance-polices-now-invalid-after-mce-bust/ Martin Lewis warns drivers to check your auto insurance now as thousands of policies are now void following company bankruptcy