Martin Lewis has warned that some drivers may find that their car insurance may become invalid at midnight.
The Money Saving Expert founder has said that from tonight many drivers will no longer be insured – despite having paid for policies.
Speaking on the Martin Lewis Money Show he explained that because MCE Insurance Company fell into administration last year that more than 100,000 of its policies had to be cancelled.
He said those with car or van insurance with the company were “especially” affected, Manchester Evening News reports.
Martin 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.”
He urged drivers to arrange a new policy “pretty sharpish”.
However, he warned drivers are set to receive “most” of the money back for any unused months as part of a Government refund scheme.
He said: “Motorbike 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.
You won’t quite get it all, you will get most of it.
Equally, if you’ve got an existing legitimate claim, they will pay you at least 90 per cent, depending on circumstances, of your payout.
The Financial Conduct Authority (FCA) confirmed MCE had entered administration back 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 as joint administrators of the company.
“The company ceased writing new insurance on November 5, 2021, and predominantly wrote motorbike insurance and car insurance policies, specifically for UK customers.
“Existing insurance policies remain in force and are valid.
“If you are a policyholder of the company then your policy will continue to be administered by the UK broker MCE UK.”
This content was originally published here.