Since 2022, insurers can’t charge existing home and car customers more than new ones for the same cover. Renewal still deserves a check.
Key things to know
- FCA rules from 1 January 2022 stop insurers charging renewing home and car customers more than new customers through the same channel.
- Prices can still rise at renewal because of claims costs, your circumstances or wider pricing.
- Other insurers may still offer a lower price, so comparing is worthwhile.
- Insurers must make it easy to cancel auto-renewal.
For years, many people paid more for home and car insurance simply by staying with the same insurer, a practice known as price walking. FCA rules changed that.
What the rules say
From 1 January 2022, the Financial Conduct Authority’s general insurance pricing rules require that, for home and motor insurance:
- a renewal price is no higher than the price a new customer would pay for the same cover through the same channel
- insurers make it easy to cancel auto-renewal
- products offer fair value
What they don’t do
| The rules do | The rules don’t |
|---|---|
| Stop loyalty penalties on home and car renewals | Freeze your premium |
| Make cancelling auto-renewal easier | Guarantee your insurer is the cheapest |
| Require fair value | Cover every type of insurance with the same renewal rule |
Why renewal still matters
Your insurer can’t charge you more than a new customer, but another insurer may still be cheaper, or offer better cover for a similar price. Your circumstances may also have changed, such as a new car, fewer miles or a different address.
Worth doing
Put your renewal date in your calendar about three weeks ahead. Many insurers price policies bought a couple of weeks in advance more favourably than last-minute ones.
A quick renewal checklist
- Read the renewal notice and check the cover hasn’t changed.
- Update anything that’s different, such as mileage or security.
- Get comparison quotes, as explained in our guide to using comparison sites.
- Decide, then renew, switch or ask your insurer to match better cover.
Check your policy
If you think you’ve been treated unfairly at renewal, complain to the insurer first and then to the Financial Ombudsman Service if needed.
Taking control of renewal
Renewal is the natural moment to review cover and price. Our guide to cheaper car insurance has more ideas for bringing the cost down.
Questions answered
Does this apply to all insurance?
The renewal pricing rule applies to home and motor insurance. Other products are covered by broader FCA rules on fair value.
Why did my renewal price still go up?
Premiums can rise for everyone when repair costs, claims or other risks increase. The rule is about fairness between new and existing customers, not a price freeze.
Can I turn off auto-renewal?
Yes. Insurers must offer a straightforward way to stop automatic renewal.
This guide is general information, not financial or insurance advice. Policies differ, so always read your own policy documents and check with your insurer. If you have a complaint, your insurer’s complaints process and the Financial Ombudsman Service can help.