How to win at car insurance haggling

Car insurance premiums are thankfully starting to fall, but new Which? research reveals insurers are still holding back their best prices for customers who haggle. 

A Which? survey of drivers with car insurance has found that customers who contacted their insurer at their last renewal to discuss the offer saved £64 on average off a year’s premium or,  £25 a month for those paying in instalments. 

Some drivers reported much larger reductions, with 5% of those on annual policies saying they saved more than £200.

Here we'll show you how much you could save, whether all customers get similar benefits, and offer four simple but proven tips on haggling effectively.

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How much you can save by haggling 

Of more than 2,000 car insurance policyholders quizzed, 59% contacted their insurer at their last renewal to discuss the price they'd been offered. Of these, 61% succeeded in getting a reduction. And 57% of hagglers said they found the process easy.

This confirms that haggling remains highly effective. But it also raises questions about whether the insurer’s first offer was reasonable to begin with – and whether drivers who don’t challenge their price are truly receiving ‘fair value’, which the Financial Conduct Authority (FCA) requires firms to provide.

Some 40% of those we surveyed didn’t haggle at their last renewal, most commonly because they were content with the initial offer.

• Find out more: best car insurance providers 2025

Not everyone benefits equally

While haggling is generally straightforward and beneficial for most who try it, this wasn’t the case for all groups of drivers.

Customers in circumstances of vulnerability at renewal – such as experiencing a difficult life event, living with a health condition, struggling to manage their finances, or lacking confidence or capability – were more likely to discuss their premium with their insurer. And these discussions led to price reductions at similar rates to other drivers.

However, most of these customers needed to change elements of their cover or increase their excess to get the lower price, making it less of a true discount.

Only 35% of vulnerable hagglers who saved money managed to do so without sacrificing some of their cover. For hagglers who weren't vulnerable, their cover remained unchanged 74% of the time. 

• Find out more: what's happening to car insurance premiums 

Haggling isn't easy for everyone

Vulnerable customers also found the process of haggling more difficult than other groups. Some 43% considered discussing costs to have been easy, compared to 65% of other customers who tried haggling.

Under the FCA’s Consumer Duty, which sets out how financial service firms should design their products and treat customers, people in vulnerable circumstances should experience outcomes as good as those for other customers.

• Find out more: how to find cheap car insurance

Does haggling work for younger drivers?

Younger drivers, who often pay the highest premiums and are among the most likely to haggle, reported similar struggles. 

They found the process less easy than older drivers and more often ended up trimming back their cover to rein in the price. 

Some 40% of 18-24 year-olds who' had contacted their insurer and got a saving had increased their excess to help accomplish this, compared to 16% of drivers overall.

The FCA is currently reviewing car insurance business models, and we believe it should investigate the fairness of haggling alongside other pricing practices.

4 ways to haggle successfully 

Not all insurers will be receptive to negotiating in every instance, but our findings show that haggling remains an indispensable tactic for getting the best price at renewal. Follow these four basic steps to maximise your chances of success:

1. Do some research: Use comparison websites to see what other prices are available for similar cover. You might even find cheaper quotes from the same insurer, as prices can vary depending on how you buy, such as via a comparison site, directly on their website or by phone. Half of drivers who checked new prices from their current insurer found a cheaper quote than their renewal offer.
2. Ask your insurer to explain its price: Ask your insurer to explain its price, any increases that have happened since last year and whether it’s willing to improve on its offer.
3. Point out better prices you've seen: Now's the time to refer to your research and discuss any better quotes you’ve seen elsewhere. Challenge your insurer to match them, or at least offer a price that's competitive.
4. Say you're thinking about leaving: If your insurer is unwilling to budge from a price you’re unhappy with, let it know you’re considering switching. This may spur it to offer a discount to keep your business, or some other incentive, such as a free add-on.

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Support our campaign to end rip-off insurance

After years of sustained price rises, car insurance premiums are beginning to fall. However, we believe insurers are failing consumers in various ways – from poor claims handling to the interest fees charged for customers paying in monthly instalments.

That's why we're campaigning to get the regulator to take decisive action. To find out how you can join more than 177,000 other policyholders in supporting our actions and increasing pressure on the industry, check our campaign page.