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Why are fewer people switching car and home insurance?
Which? takes a closer look at why an increasing number of customers are staying loyal to their providers
Switching provider is often one of the easiest steps you can take to lower insurance premiums, but new research found that the number of customers moving firms has fallen.
The report by Consumer Intelligence found 33% of car insurance customers switched provider in the first half of 2025, down from almost 50% at the end of last year. Home insurance switching has also dropped, to 36%.
We take a closer look at what could be behind this shift in behaviour and why customers may be right to look beyond price when choosing a policy.
Why are fewer customers switching?
Both car and home insurance premiums are slowly falling, after hitting record highs two years ago. But Consumer Intelligence's report – The End of Churn – found fewer people are switching provider, despite the chance of finding a cheaper deal elsewhere.
Older customers are now the least likely to move, with only 27% of over-65s switching home insurer.
Shopping around for a new policy and provider has also fallen out of fashion. The number of people comparing the market has gone down to 72% for motor insurance, from highs of 85%, and is around 70% for home insurance.
- Find out more: what's happening to car insurance premiums?
What's behind the shift in behaviour?
Consumer Intelligence's report shows price remains a strong motivator for moving – 47% of motor customers said their new policy was cheaper than renewal, while 35% of home customers claim price was the primary reason to move.
However, more people are starting to look beyond cost when deciding whether to move. The research found that 24% of home insurance customers and 21% of car insurance customers switched to get better cover.
However, 13% of home customers who switched did so because of bad claims experiences, and 8% of motor insurance customers say the same. Claims are also an important reason for staying loyal, with 14% of car and 16% of home customers highlighting claims experience for their decision not to move.
- Find out more: best car insurance 2025
'Claims service is more than a nice-to-have'
Dean Sobers, Which? insurance expert, says:
People regard insurance as a bit of a ‘grudge’ purchase – in other words, a product you buy because you have to, rather than want to. And no one wants to need to use it.
This can make it tempting to focus on buying the cheapest insurance possible, paying less attention to how suitable the cover is or how well the insurer treats its customers when they claim.
Price can’t be dismissed. It’s important – especially with household budgets under strain. But it’s a good thing if customers are increasingly factoring claims service into how they choose insurers.
Claims service is more than just a nice-to-have. It’s arguably what you’re paying the insurer for. When we review car and home insurance products, we typically see wide variation between different firms in this area.
In our most recent home insurance analysis, our claims scores (based on feedback from claimants) ranged from 48% to 77%.
It’s always worth shopping around to check if you’re getting a genuinely competitive price for the cover you’re buying – and tell your insurer if you’re considering switching to a cheaper provider.
But zeroing in on price alone could prove a false economy down the road. The benefit of picking the very cheapest option will be undone by the stress of enduring a shoddily handled claim – or the insurer not paying out at all.
6 other ways to keep costs down
Even if you're happy with your insurer and policy, there are ways you can lower your premium without jumping ship.
Here are a few simple steps you can take to reduce the cost of cover:
1. Don't automatically renew
Never agree to the auto-renewal clause included in your 12-month insurance agreement. This means that once your initial one-year contract lapses, you'll automatically be enrolled for another year.
Instead, use the best quotes you've gathered to negotiate with your insurer and take your business elsewhere if it doesn't improve its offer.
- Find out more: how to get cheap car insurance
2. Renew early
If you leave arranging insurance until the last minute, generally speaking, insurers are likely to charge you more than if you bought the cover a few weeks in advance of it starting.
Try buying your insurance weeks (rather than days) ahead of the policy going live.
- Find out more: the cheapest day to buy car insurance
3. Pay annually
Paying by the month for cover can make it more manageable for your budget, but it's usually the most expensive option.
When paying monthly, you're effectively borrowing the year's premium to repay in instalments. This typically comes with interest, hiking the overall cost.
- Find out more: best car insurance for no-claims bonus
4. Try haggling
You might be able to get the price down by haggling.
Do your research first and come to the negotiation table armed with any cheaper quotes for the same level of coverage. You may find an insurer is happy to give you a discount rather than lose a customer to a rival company.
- Find out more: how to win at car insurance haggling
5. Watch the excess
Most policies allow you to add a voluntary excess to bring down the premium. Of course, this isn't free money: the higher the excess, the more you'll need to pay in the event you make a claim.
Consequently, your total excess (the voluntary excess you've chosen plus any compulsory excess that applies to your cover) must be no more than you can afford to pay at short notice if a claim is necessary.
- Find out more: car insurance add-ons fees and charges
6. Use a broker
A broker's job is to match your insurance needs with the best available price. Brokers will usually have access to deals and prices that aren't available directly to customers.
But beware of scammers or 'ghost brokers' who pose as brokers and sell fake or dishonestly obtained cover to customers. In some cases, the deception isn't noticeable until the customer tries to claim.
To find the real deal, visit the British Insurance Brokers' Association website or call 0370 950 1790.
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