Martin Lewis has issued a warning to thousands of drivers across the UK.
The ITV presenter, and maestro Money Saving Expert, explains that from this weekend many drivers will find they are no longer insured – despite having paid out policies.
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He explained: “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.”
Speaking on the Martin Lewis Money Show, Mr Lewis urged drivers to put in place a “pretty sharp” new policy, reports MEN.
He said those who had car or van insurance with the company were “particularly” affected.
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’ll need to arrange 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.
You are still covered until those days, says the Express.
The Financial Conduct Authority (FCA) has confirmed that MCE started operating in November.
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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.”