Taken for a ride?: Sizeable reductions to car insurance renewal quotes after haggling cast doubt on insurers offering fair value, Which? warns

A large number of motorists are receiving reductions to their renewal quotes, some more than £200, a Which? survey has found, raising questions about whether firms are meeting regulatory requirements to offer fair value.

If significantly better prices are offered - but only after haggling - insurers may be in breach of the Financial Conduct Authority’s (FCA) Consumer Duty, which came into force in July 2023. Which? is concerned such behaviour could breach the rules, particularly around fair value. 

The FCA is clear that firms must demonstrate the price a consumer pays for a product or service ‘is reasonable compared to the overall benefits they can expect to receive.’ For general insurance products, firms have been subject to other regulatory requirements to offer fair value since October 2021.

The consumer champion carried out a survey of over 2,004 UK adults with car insurance. Six in ten (59%) respondents said they haggled with their insurer, most of them doing so over the phone. 

For most people, haggling is highly effective - with three fifths (61%) of those who contacted their insurer getting 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. 

One in five (22%) of these respondents said they saved more than £20 and up to £40 off their insurer’s first offer, while the same percentage said they got more than £40 and up to £60 off their quote. One in ten (11%) said they got more than £60 and up to £80 off, and a similar percentage (9%) said they got more than £80 and up to £100 off. Three per cent saved more than £100 and up to £120. Five per cent said they were able to save more than £200 after haggling. 

Overall, half (49%) of drivers noticed their premium go up at their last renewal, while a quarter (27%) saw a reduction. 

The ease with which customers haggled was not universal, however. 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.

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. The Consumer Duty sets out the expectation that consumers in vulnerable circumstances should experience outcomes as good as those for other customers.Fair value requirements cover all firms in financial services, but the opaque nature of pricing in insurance makes the process of haggling more suspect. 

The FCA has said that where upfront discounts are clear and firms can demonstrate that customers not receiving discounts are getting fair value, this could meet regulatory standards. However, it is unclear how transparent these discounts are to consumers and how firms justify them.

With some motorists receiving such hefty discounts after haggling, Which? believes there are serious questions about whether the first offer from the insurer in these cases really represents fair value, as per the Financial Conduct Authority’s Consumer Duty requirements. 

The survey found that 40 per cent of respondents did not discuss the price offered before renewing, suggesting that many customers may be unfairly paying over the odds. The regulator is currently conducting a review of motor insurance models, and the consumer champion believes it should be investigating this and the fairness of other pricing practices. 

The research reinforces the importance of haggling if consumers want to secure the most competitive insurance quote. To haggle effectively on your motor insurance renewal, research cheaper quotes beforehand and contact your insurer, preferably by phone. Always compare the full value of the policy, not just the overall price and look out for any changes to excess or your cover.

Sam Richardson, Deputy Editor of Which? Money, said: 

“Some motorists may be forgiven for wondering how the first price offered by their insurer could ever represent fair value if such big reductions in the cost of cover can be achieved with a simple phone call.

“The FCA should look into this to determine whether insurers are falling short of their requirements under the Consumer Duty to offer fair value.

“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.”

ENDS

Notes to Editors

Which? surveyed 2,004 adults in the UK with car insurance between 30th April and 7th May 2025. Fieldwork was carried out online by Deltapoll.

One question the survey asked car insurance customers was how much they were able to save off their annual premium for car insurance compared to the price they were initially quoted by their insurer: 

One in ten (11%) said they got more than £60 and up to £80 off, and a similar percentage (9%) said they got more than £80 and up to £100 off. Three per cent saved more than £100 and up to £120; two per cent saved more than £120 and up to £140; one per cent saved more than £140 and up to £160 and more than £160 and up to £180; two per cent saved more than £180 and up to £200. Five per cent said they were able to save more than £200 after haggling. 

Tips on haggling

 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.

About Which?

Which? is the UK’s consumer champion, here to make life simpler, fairer and safer for everyone. Our research gets to the heart of consumer issues, our advice is impartial, and our rigorous product tests lead to expert recommendations. We’re the independent consumer voice that influences politicians and lawmakers, investigates, holds businesses to account and makes change happen. As an organisation we’re not for profit and all for making consumers more powerful.

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