Car insurance news: renewals, pricing rules and cutting your premium

Car insurance is a legal requirement for any vehicle used on UK roads, and it is one of the bills where shopping around can make the biggest difference. The loyalty penalty rule Since January 2022, Financial Conduct Authority rules have meant insurers cannot quote a renewing customer more than they would charge an equivalent new customer for the same cover through the same sales channel. Before this, long-standing customers were often charged far more than new ones, a practice known as price walking. The rule does not mean your renewal price is the best available. It compares you only with the same insurer's new customers on the same channel. Other insurers may still offer much lower prices for the same cover, so comparing remains worthwhile. Your renewal notice Your insurer must send your renewal notice before your policy ends, showing last year's premium alongside the new quote. Check that your details are still correct, including your annual mileage, where the car is kept overnight and any named drivers, because errors can affect claims as well as price. Many drivers find the best prices by comparing a few weeks before renewal rather than on the last day, as quotes taken at the last minute are often higher. Keep your car insured Under Continuous Insurance Enforcement, a vehicle must be insured unless it has been declared off the road with a SORN. You can check whether a vehicle appears on the Motor Insurance Database through the official askMID service. When comparing car insurance, check: 1. The level of cover: comprehensive, third party fire and theft, or third party only. 2. The compulsory and voluntary excess you would pay on a claim. 3. Whether your no claims discount is protected, and what that costs. 4. Extras such as a courtesy car, breakdown cover and legal expenses, and whether you need them. 5. That the annual mileage, job title and parking details are accurate.