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4w ago

Which? Urges FCA to Probe Insurers’ Car Renewal Pricing Practices

The group argues that the FCA’s Consumer Duty requires insurers to provide fair renewal value up front instead of relying on customer negotiations to lower premiums.

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Caption: Renewing car insurance can leave some drivers floundering. (Photo: ProjectB/Gett
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Overview

  • Which? has formally requested that the Financial Conduct Authority investigate whether initial renewal quotes breach Consumer Duty by only delivering fair value after haggling.
  • The FCA is currently reviewing motor insurance business models to determine if pricing practices meet its fair value obligations.
  • A survey of over 2,000 motorists found six in ten who negotiated achieved an average annual saving of £64, with one in 20 cutting more than £200 off their renewal quote.
  • Insurers and the Association of British Insurers contend that post-quote discounts stem from deeper individual assessments of factors like security measures and driving history.
  • Which? warns that about 40% of customers do not negotiate renewal prices, risking higher premiums for vulnerable groups unable or unwilling to haggle.