Charity Citizens Advice has warned that customer could be paying £987 more per year if they stay loyal to their provider.
The report found that dual pricing which sees loyal customers charged more than new customers for the same service is a common practice across six key markets including home insurance.
Gillian Guy, chief executive of Citizens Advice, said: “Companies routinely use tactics that take advantage of human behaviour - and regulators are letting them get away with it.
The Insurance Age team unpick the most recent and most popular stories.Subscribe to our daily newsletter for all the latest news
- FSCS set to compensate Alpha Insurance latent defect insurance policyholders
- Zurich cuts scheme contract with Fleet UK
- THB pledges support for Fleet UK
- Ardonagh shutters Swinton's advised commercial business
- Brightside hires new MD of broking as Russell Bence exits
- Allianz appoints branch leaders
- Latest Ogden rate change will cost the industry over £160m