Some car insurance customers ‘shaving over £200 off renewal quotes by haggling'

Leader Live

01-07-2025

The consumer group said the size of some discounts raises questions about some insurers offering fair value.
Which? commissioned a survey of more than 2,000 people across the UK with car insurance, asking how, if at all, the cost of cover has changed since their last renewal.
Around six in 10 (59%) said they haggled with their insurer, with most doing so over the phone.
Three-fifths (61%) of those who contacted their insurer received a reduction to the original price offered.
The average amount motorists that pay annually for cover saved per year was £64 – although some received much more sizeable reductions, with 5% of these people saying they were able to save more than £200 after haggling.
Overall, nearly half (49%) of drivers noticed their premium go up at their last renewal, while a quarter (27%) saw a reduction. Nearly a quarter (23%) said it had not changed and 1% did not know.
The survey also indicated that customers facing challenges at renewal – for example experiencing a difficult life event, a health condition, struggling to manage their finances, or lacking confidence or capability – appear to have a different experience of haggling than those who were not.
Vulnerable customers were more likely to discuss their premium with their insurer, and these discussions led to price reductions at similar rates.
But these customers were also more likely to have to change their policy to get the lower price and were less likely to say they found the process easy, according to Which?
It said the Consumer Duty on financial firms sets out the expectation that consumers in vulnerable circumstances should experience outcomes as good as those for other customers.
With some motorists receiving such hefty discounts after haggling, Which? believes there are 'serious questions' about whether the first offer from the insurer in some cases really represents fair value.
It also said that with many people renewing without discussing the price, some customers may be paying over the odds.
Sam Richardson, deputy editor of Which? Money, said: 'While some people may feel daunted by haggling with their insurer, this research underlines how it is worth doing for many consumers and is likely to be one of the most effective ways to cut the cost of your renewal.'
The survey was carried out by Deltapoll in April and May.
An Association of British Insurers (ABI) spokesperson said: 'Our members take their commitment to their customers and their regulatory requirements seriously.
'They consistently work hard to deliver dependable, high-quality products that provide genuine value. Variations between an initial online quote and a bespoke telephone offer often come down to a deeper dive into individual factors which may have changed from the previous policy – such as your vehicle's security measures, driving habits, level of cover and choice of voluntary excess.
'We'd always recommend shopping around to secure cover that truly meets your needs, not just based on price.'
Whether to offer cover and at what price is a commercial decision for individual insurers based on their risk appetite.
In 2022, rules were implemented to end a 'loyalty penalty' paid by longstanding insurance customers.
Under the rules, when existing home and motor insurance customers renew their insurance policy, the price charged by the insurance provider cannot be more expensive than the price that they charge an equivalent new customer for the equivalent policy.
Here are some steps for haggling suggested by Which?:
1. If your insurer has increased its renewal price, ask it to justify the increase.
2. Then point out the lower prices you have found elsewhere, and ask your insurer if it can better those offers.
3. If it is not able to provide a better quote, state that you are willing to go elsewhere. If you have been a loyal customer for many years, it could be worth mentioning this.
4. If the insurer is not budging much on the premium but you would still like to stick with your provider, one option could be to ask for an add-on (such as breakdown cover) to be thrown in. Just make sure that it is worth it.