Martin Lewis warns thousands of people their car insurance could become invalid at midnight
The money-saving expert explained that because MCE Insurance Company fell into administration last year, more than 100,000 of its policies had to be cancelled.
Martin Lewis has warned that some drivers may find their car insurance could become invalid at midnight.
The Money Saving Expert founder says that from tonight many drivers will be uninsured – despite having paid out policies.
Speaking on the Martin Lewis Money Show, he explained that because MCE Insurance Company fell into administration last year, more than 100,000 of its policies had to be cancelled.
He said those who had car or van insurance with the company were “particularly” affected, reports Manchester Evening News.
Martin said: “MCE Insurance Company, which was one of the UK’s largest motorcycle insurers, is to cancel all of its 105,000 remaining policies after falling into 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 redesign 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.”
He urged drivers to put in place a “pretty sharp” new policy.
However, he warned that drivers should receive ‘most’ of the money for unused months under a government reimbursement scheme.
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 need to organize a fairly sharp new one.
“Especially if you have car or van insurance.”
The government-backed Financial Service Compensation Scheme (FDCS) will refund you 90% of your pro-rated refund for unused months.
You won’t get everything, you will get most of it.
Likewise, if you have an existing legitimate claim, they will pay you at least 90%, depending on the circumstances, of your payment.
The Financial Conduct Authority (FCA) has confirmed that MCE started operating in November.
They previously said: “On November 19, 2021, following an application for administration to the Supreme Court of Gibraltar, the company was placed into administration.
“Andrew Stoneman and Geoff Bouchier of Kroll (Gibraltar) Limited have been appointed joint directors of the company.
“The company stopped underwriting new insurance on November 5, 2021 and primarily underwrote motorbike and car insurance policies, specifically for UK customers.
“Existing insurance policies remain in force and are valid.
“If you are a company underwriter, your policy will continue to be administered by UK broker MCE UK.”