Drivers who receive car insurance renewal quotes matching last year’s price may be overpaying, according to personal finance expert Martin Lewis.
Speaking at the Ideal Home Show, Lewis warned that while a stable premium might seem like a positive outcome, it could mean policyholders are missing out on savings as insurance costs fall, the Express reported.
At the start of 2025, car insurance premiums saw their sharpest decline in a decade, dropping by 18%. This downward trend has continued, raising concerns that consumers who accept unchanged renewal quotes may effectively be paying more than necessary.
According to the latest Consumer Intelligence Car Insurance Price Index, data showed that quoted car insurance premiums in the UK declined 6% in the last quarter of 2024 and 8.8% over the past year.
Drivers in Wales saw the most significant decrease, according to the report, followed by Yorkshire & The Humber and the West Midlands. Scotland recorded the smallest annual decline, according to the report.
“This is what’s happening this year; car insurance renewal comes in (and you think), ‘Ah, same price as last year, that’s good’. No, it’s not good, don’t be complacent,” Lewis said. “The market is down 18%, you should not be thinking your renewal is the same price as last year. You should be thinking, ‘I’m being overcharged by 18% compared to what’s happening on the market.’”
Lewis urged drivers to challenge their renewal offers, even if insurers present a modest reduction. “If your renewal is coming in at the same price or only a few quid lower, then don’t sit there and automatically renew,” he advised. Instead, he encouraged policyholders to compare prices across multiple platforms to secure the best deal.
Lewis advised motorists to use these quotes as leverage to negotiate better terms with their existing insurer. “You can use those prices to haggle,” he said, highlighting the potential for further savings by challenging renewal quotes rather than accepting them at face value, according to the report.
