How to negotiate your car insurance

Just over one-third (38%) of Brits are haggling over their premiums, with another 17% planning to negotiate with their providers this year.

That's according to recent data from comparison site, Go.Compare. 

When they asked more than 2,000 UK bill payers, 59% said they'd already started haggling over their broadband and TV packages (the most popular bills to barter on), and 42% were doing the same for car insurance (the second most popular). This was followed by 41% of people saying they tried to get a better price on their mobile phone contract.

We look at the best steps to follow when trying to negotiate cheap car insurance.

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Does haggling work?

While every case is different, evidence suggests it's worth picking up the phone to your insurer.

We asked nearly 5,000 customers whose broadband, combined broadband and TV or mobile phone contract had recently ended whether they had switched or haggled, and how much they had saved on their bills in the process.

It showed that compelling savings are available - in particular for those willing to switch. We found that switching can slash broadband, pay TV and mobile bills by up to £187.

To maximise your chances of success, and the savings from haggling, follow these steps:

1. Do your research

Are other insurers offering lower prices? The quickest way to find out is using price comparison websites. 

Sites such as Confused.com, Go.Compare and Moneysupermarket.com will allow you to see a wide range of providers and what insurance premiums they're offering, including their add-ons, fees and charges. 

It's important to note that some insurers won’t be on price comparison websites, for example NFU Mutual and Direct Line. They're not ones you'll want to miss – we made NFU Mutual a Which? Recommended Provider and two Direct Line policies Best Buys when we recently analysed the Best car insurance companies in the UK 2024.

When conducting your research, you might find that your provider is offering a cheaper price elsewhere. You can challenge it on this, which could lead to it matching the lower price for you. 

2. Speak to the retentions department

When you contact your insurance provider, you'll likely be put through to the customer service department. While they can help with any customer queries you might have, they're not able to make a decision about how much you pay for your premiums. 

For that, you'll need to talk to the retentions department. They're in charge of keeping customers happy with the service the company provides. It's in their best interest for you to stay with the company, and they'll want to do what they can to ensure that happens. 

• Find out more: Best home insurance.

3. Haggle

If your insurer has increased its renewal price, ask it to justify the increase.

Then point out the lower prices you've found elsewhere, and ask your insurer if it can better those offers.

If it's not able to provide a better quote, state that you're willing to go elsewhere. If you've been a loyal customer for many years, it's worth mentioning this.

If the insurer isn't budging much on the premium, one option is to ask for an add-on (such as breakdown cover) to be thrown in. Just make sure it's worth it.

• Find out more: our car insurance haggling script.

4. Don’t accept the first offer

Don’t feel pressured to take the first price offered. Ask to mull it over for a few days - your insurer might give you a time frame.

Haggling can seem daunting at first, so give yourself time and space to decide what's best for you and your car insurance. 

5. Bundle your policies

Consider bundling multiple insurance policies (e.g., car, home, and life insurance) with the same provider. 

Insurers often offer discounts for customers who hold multiple policies with them. You can mention this when negotiating to potentially secure a better overall deal.

• Find out more: Best and worst broadband providers.

6. Leverage loyalty programmes 

Check if your insurer has a loyalty programme or offers benefits for long-term customers. 

If you’ve been with the same insurer for several years, use this as leverage to ask for a better rate.  

• Find out more:  How to switch broadband provider.

7. Be prepared to walk away

As with haggling in a market, you'll be most effective when the seller is convinced you could go elsewhere.

Although insurers differ when it comes to cover and customer service, you're likely to have alternative options.

It's worth getting a policy with your new provider lined up 30 days before your old one finishes, to begin the day after it finishes.

Getting quotes for a new policy the day before it starts could prove more expensive.

• Find out more: Best car insurance for the over-50s 2024.

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