At renewal, you can review the new price, cover, excesses and details before continuing the policy or choosing another option.
Renewal is when your current insurance policy reaches its end date and you are offered cover for a new term.
Many car, van and home policies run for one year, but the length can vary. Renewing starts a new period of cover. This means the price, excesses, limits and policy terms may not be the same as before.
Your insurer or broker should send your renewal information in good time. This gives you a chance to review the offer, correct any details and compare other options.
For most annual consumer insurance policies, the renewal notice should clearly show:
The FCA’s insurance renewal rules require the current and renewal premiums to be shown clearly so you can compare them.
Do not look at the insurance premium alone. Check the policy wording and insurance schedule for changes to excesses, exclusions, limits and optional cover.
The Association of British Insurers’ renewal guidance also recommends checking whether your circumstances and insurance needs have changed.
Yes. Your renewal price can rise or fall.
An insurer may consider your claims, convictions, changes in how a vehicle or property is used, repair costs and other risk factors. Each insurer has its own underwriting approach, so prices can vary.
For consumer home and motor insurance covered by the rules, the renewal price must not be higher than the equivalent new-business price calculated for a matching new customer. The comparison generally uses the channel through which the policy was first bought, although specific exceptions apply.
This does not mean your renewal must match every online quote or be the lowest price available. The detailed requirements are set out in the FCA’s home and motor renewal pricing rules.
Your price may still increase when your circumstances or the insurer’s view of the risk changes.
Review all the details shown in your renewal documents. These may include:
Under the Consumer Insurance (Disclosure and Representations) Act 2012, consumers must take reasonable care not to give an insurer incorrect or misleading information. This duty also matters when you confirm or update details at renewal.
Incorrect information could affect the price, policy terms, insurer acceptance or a later claim, depending on the circumstances.
When changing motor insurer, you may also need to provide proof of your no-claims bonus within a set time.
Automatic renewal means a new term starts unless you tell the insurer or broker not to continue the policy.
Your documents should explain whether automatic renewal applies and how to switch it off. FCA rules require firms to provide an easy way to stop automatic renewal without charging a fee simply for turning off that feature. You can read the requirements in the FCA rules on cancelling automatic renewal.
Turning off automatic renewal is different from cancelling after the new term has started. Once cover begins, charges may apply under the policy’s cancellation terms. A cooling-off period may apply, but you may still need to pay for time on cover and any permitted fees.
Make sure replacement insurance has started before allowing an existing policy to end.
Contact the insurer or broker first if the renewal price appears wrong, information is missing or the policy renewed after you asked for automatic renewal to be stopped.
If the complaint is not resolved, the Financial Ombudsman Service explains how renewal and pricing complaints are assessed. It may consider whether the firm used accurate information, followed its normal approach and communicated clearly.
We arrange car, van and home insurance through insurers. We may be able to review your details and look for available options, including where you have previous claims, motoring convictions or a low no-claims bonus.
You can compare a renewal offer with a new insurance quote. Prices, terms, payment options and acceptance depend on the insurer, the policy and the full details provided. We are an insurance broker and do not underwrite the policies ourselves. Cover cannot be guaranteed.
