Every year, millions of car insurance renewals are sent to drivers. Often, the quote comes in higher than the previous year. You typically face two choices:
- Spend time on comparison sites to find a cheaper deal.
- Let the policy auto-renew and pay more for being “loyal.”
However, this changed when the Financial Conduct Authority (FCA) introduced sweeping reforms.
Car Insurance Renewals – what the FCA changed
The FCA ruled that it was unfair for loyal customers to pay more. Previously, many insurers applied a “loyalty charge”: you got the cheapest rate in year one, then paid more in year two and beyond.
A major FCA review found that 6 million customers could have saved £1.2bn if insurers had priced policies fairly according to risk.
To address this, the FCA introduced rules preventing “price walking.” Now:
- If your policy has no claims or activity, your insurer must charge the same or less than they would for a new customer with an equivalent policy.
This ensures loyal customers are no longer penalised for staying with their insurer.
Checking Your Future Renewals
The new rules came into effect on 1 January 2022, so you may have already seen a more competitive quote at renewal. If not, here’s what you should do:
- Review your renewal quote carefully, whether it arrives by post or email, and compare it to your previous year’s price.
- Contact your broker or insurer if the policy is more expensive and ask for clarification.
- Continue shopping around. Even if your renewal quote is lower, it may not be the best deal on the market—check direct insurers and comparison sites.
How Total Car Check Can Help with Car Insurance Renewal
When reviewing your car insurance renewal, it’s useful to understand the insurance cost of your vehicle. Total Car Check provides a simple way to do this. By entering your vehicle registration, you can access:
- Insurance Group Rating – See which group your car falls into (1–50), which directly affects premiums.
- Vehicle History Check – Identify any past accidents, outstanding finance, or theft records that could influence insurance costs.
- MOT and Service Records – Verify the car’s maintenance history.
- Mileage Verification – Ensure the odometer readings are accurate, helping prevent premium surprises.
Knowing your car’s insurance group and history can help you budget for renewal, compare quotes effectively, and avoid overpaying. For more details, see Total Car Check’s guide on understanding insurance groups.
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