As of midnight January 14, thousands of motorists have been made uninsured – despite paying for their insurance policies.
Martin Lewis of Money Saving Expert has warned drivers that, following the collapse of a big insurer, 105,000 UK citizens will no longer be able to legally drive their vehicles on public roads, the Manchester Evening News reports.
People with car or van insurance have been most affected by the collapse of MCE Insurance Company, as Mr Lewis explained on the Martin Lewis Money show.
He said: “MCE Insurance Company, which was one of the UK’s biggest motorbike insurers, is to cancel all of its 105,000 remaining policies after falling into administration last year.
“The move comes despite the insurer initially promising to honour existing cover.
“For policies taken out prior to November 9, 2021, the shake-up means car or van insurance cover will end at midnight on January 14, 2022.
“Cover for motorbike or scooter insurance will end at midnight on January 31, 2022.”
Mr Lewis urged drivers to arrange a new policy “pretty sharpish”.
He said those with car or van insurance with the company were “especially” affected.
However, he warned drivers are set to receive “most” of the money back for any unused months as part of a Government refund scheme.
On his show, he said: “Motor insurer MCE is, I’m afraid, cancelling 105,000 policies because it’s going bust.
“If you got your policy before November 9, you will need to arrange a new one pretty sharpish.
“Especially if you’ve got car or van insurance.”
The Financial Service Compensation Scheme (FDCS), which is government backed, will pay you back 90 per cent of your pro rata refund for unused months.
This content was originally published here.