The Money Saving Expert founder urged drivers to get a ‘pretty sharp’ new insurance policy
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.
So some drivers may not find that they are no longer insured, even though they have paid out policies.
When do MCE insurances end?
Mr Lewis warned that motorists with car or van insurance with MCE were ‘particularly’ affected by the company’s bankruptcy, with policy cover ending this month.
For insurance taken out before November 9 of last year, car or light truck insurance coverage ended on January 14 at midnight.
Guarantees for motorcycle or scooter insurance taken out before November 9 will end on January 31 at midnight.
Speaking on the Martin Lewis Money show, he explained: ‘MCE Insurance Company, which was one of the UK’s largest motorcycle insurers, must cancel all of its 105,000 remaining policies after falling under administration last year.
“The decision comes despite the insurer’s initial promise to honor existing coverage
“For policies taken out before November 9, 2021, the shake-up means that car or van insurance cover will end at midnight on January 14, 2022.
“Motorcycle or scooter insurance coverage 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 take out a “pretty sharp” new insurance policy, especially those with car or van insurance.
He said: ‘Motorcycle insurer MCE is canceling I’m afraid 105,000 policies because it’s going bankrupt.
“If you got your policy before November 9, you will have to arrange a fairly sharp new one.
“Especially if you have car or van insurance.”
Will policyholders be reimbursed?
The money-saving expert said drivers with current policies taken out before November 9, 2021 will receive a partial refund under the government-backed Financial Services Compensation Scheme (FSCS).
Under the program, affected customers will receive a pro-rated refund of 90% of the unused months remaining on their policy.
Customers are not required to do anything to claim this, as a check from the FSCS should arrive in the mail.
Those who have purchased MCE policies since November 9, 2021 are not affected because their insurance is underwritten by Saber Insurance Group, not MCE.
Customers who have questions about obtaining a refund can contact MCE via the live chat tool.
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