Car Insurance Customers Save £200+ by Negotiating Renewals

Strategic Insights -

Over 2,000 UK car insurance policyholders were surveyed by Consumer group Which?, revealing that nearly 6 in 10 (59%) of respondents reported negotiating with their insurer, with most doing so over the phone. Results showed that three-fifths (61%) of those who contacted their insurer received a reduction to the original price offered, with some savings exceeding £200. The average annual savings per motorist were £64, while 5% reported saving more than £200 after haggling. The survey also found that vulnerable customers, including those experiencing life events, health conditions, or financial struggles, were more likely to discuss their premiums and receive price reductions, but often had to change their policy to secure the lower price.

Key Takeaways:

  • 59% of car insurance policyholders negotiated with their insurer, with most doing so over the phone.
  • 61% of policyholders who contacted their insurer received a reduction to the original price offered, with some savings exceeding £200.
  • The average annual savings per motorist were £64, while 5% reported saving more than £200 after haggling.
  • Vulnerable customers, including those experiencing life events, health conditions, or financial struggles, were more likely to discuss their premiums and receive price reductions, but often had to change their policy to secure the lower price.
  • Nearly half (49%) of drivers noticed their premiums went up at their last renewal, while a quarter (27%) saw a reduction.
  • Some customers may be paying over the odds due to not discussing prices with their insurer.

Statistics:

  • 59% of UK car insurance policyholders negotiated with their insurer.
  • 61% of policyholders who contacted their insurer received a reduction to the original price offered.
  • Average annual savings per motorist: £64.
  • 5% of policyholders reportedly saved more than £200 after haggling.
  • 49% of drivers noticed their premiums went up at their last renewal.
  • 27% of drivers saw a reduction in their premiums.
  • 1% of drivers did not know whether their premiums had changed.

Sources:

  • Which? (2022) - "Six in 10 car insurance customers secure discounts by negotiating" [Source]
  • Deltapoll (April-May 2023) - Car insurance survey [Source]