Insurance Renewals

The end of the loyalty penalty

For years, some insurers quietly raised prices for existing customers each year — a practice known as price walking — so that loyal customers paid more than new ones. Since 1 January 2022, FCA rules for home and motor insurance require that the price offered to a renewing customer is no higher than the equivalent price the insurer would offer an otherwise identical new customer through the same channel.

This does not mean your price cannot go up — the underlying cost of cover can still rise — but it does stop you being charged more simply for being a loyal customer. It is still worth shopping around, as another insurer may be cheaper.

Automatic renewal

Many policies renew automatically unless you tell the insurer to stop. This can be convenient, so you are never left uninsured, but it can also mean you drift onto a policy you would not have chosen. FCA rules require firms to tell you if a policy auto-renews and to make cancelling that feature at least as easy as taking the policy out in the first place.

Checking your renewal

Your renewal notice must show last year’s premium alongside this year’s so you can see any change. Use the renewal as a prompt to review the level of cover, update any details that have changed, and compare quotes elsewhere before deciding whether to renew, switch or cancel.