Most would see this as a win, but what about those who didn’t call?
Which? is concerned that you might be “taken for a ride” on renewals. The consumer organisation wants the FCA to investigate if insurers are offering fair value to their customers.
More than 2,000 adults with car insurance were surveyed by Which?, revealing a large number benefited from reductions to their renewal price, with some saving £200 or more.
60% got into a discussion with their insurer about their quote, most over the phone. In 61% of these cases, they were offered a lower price.
With the average saving being £64 per year, some received larger reductions. One in 20 saved more than £200.
Which?, citing the FCA’s consumer duty rules, suggests insurers might be in breach if significantly better prices are offered after a fuss is made.
Price hikes at renewal are not unusual, as seen in previous cases featured by Guardian Money.
A significant number of customers pay more than they need to, given that 40% of those surveyed didn’t question their insurer before renewing.
Which? provides advice on negotiating with your insurer:
- If your renewal price increases, ask for a justification of the hike.
- Point out competitive deals and see if your insurer can match or beat them.
- Mention that you are open to taking your business elsewhere, especially if you’ve been a loyal customer.
- If the company won’t budge, consider asking for extras (like breakdown cover) to improve the deal.
The Association of British Insurers states that differences between initial quotes and final offers can be due to changes in individual factors such as vehicle security, driving habits, level of cover, and voluntary excess.
It also affirms its members take their customer commitments and regulatory responsibilities seriously.
Source: https://www.theguardian.com/money/2025/jul/05/car-insurance-which-renewal-price-rises-insurers
