How staying loyal to your car insurance provider could be costing you more

Loyalty is important in many walks of life, but when it comes to renewing your car insurance, it can sometimes pay to shake things up a little from time-to-time.

In fact, as a rule of thumb, Bobatoo recommends not accepting your car insurance renewal quote straight away, even if you think you’re being offered a great deal.

This is because the average car insurance cost is likely to rise for those who decide to stay loyal to their car insurance provider.

A man looking shocked at his car insurance bill

Loyal customers pay more for insurance

This certainly shouldn’t be the case, but it is usually true that the longer you stay with your insurer, the more you’ll be paying for your car insurance.

And while the tech-savvy drivers among us might be aware of price comparison sites that can help to find a better car insurance deal, it is the more vulnerable customers who, unable to find an alternative, are being stung by continuous price hikes.

Why is my car insurance renewal higher than a new quote?

When you get hold of your new car insurance quote, you may find that your insurer is offering you a worse deal than they’re offering new customers.

How is this fair? The only answer is, it isn’t; but there is a reason for why your car insurance renewal quote might be higher than the premiums being offered to new customers.

Price comparison websites like Compare The Market and, and money advice services like MoneySavingExpert have put pressure on insurance companies to drop their prices in order to compete.

When lowering their prices for new customers, many of these companies will often hike up the prices for existing customers in order to recoup some of that money.

Can I cancel my car insurance policy and renew with the same company?

Yes - If you find a cheaper deal with your current insurer as a new customer, then you can always just reapply with them once your insurance term ends – at this point, you’re technically a new customer.

But instead of going through the added hassle of your insurance lapse at the end of your current deal, you should contact your insurer first to request a price match – many insurers will honour the prices shown on price comparison websites for their existing customers, it’s just a case of asking.

When should I change my car insurance?

If you decide that you are going to switch insurers, you don’t have to wait around until your current policy expires - in fact, the best time to renew a car insurance policy is usually around three weeks before!

Another reason to change your car insurance is when your policy undergoes significant change. This can include:

  • Adding or removing a driver (particularly a young driver) from your insurance
  • Buying a new car
  • Changing address
  • Changing job

All of these things can drastically change the cost of your car insurance premium, so if anything is set to change, shop around to see if you can get a better deal under your new circumstances.

The risks of changing insurance companies

We’ve established that changing your car insurance provider can be a great way to save on your premium, but what are the risks?

You may not get a better deal

Before biting the bullet and informing your insurer that you’re packing your bags, make sure that there is a better deal out there for you.

Not all insurers hike up their prices for loyal customers and some will offer you a better deal as a long-term customer, even if it does take a bit of haggling over the phone.

It’s also worth considering what other benefits you get with your current insurer – such as breakdown cover – which you may have to purchase separately after you switch.

Loyalty sometimes means lenience

If you’ve been with your current insurer for a long time, they may be more lenient when it comes to offering you a renewal after an unfortunate series of accidents.

If you’ve only been with your insurance provider for a year, and had more than 2 accidents within that time, they may not offer you a renewal at all.

Less comprehensive cover

Always beware when signing up to the cheapest car insurance quote you can find, because it may not offer you the same amount of cover as you had previously – even if it’s only written in the small print.

This can include things like potential compulsory and voluntary excess fees or access to a courtesy car in the event of an accident.

How do I lower my car insurance?

For expert advice on how you can get the best possible car insurance deals, take a look at Bobatoo’s guide to saving money on your car insurance here.

It includes suggestions such as telematics insurance, which has been proven to significantly decrease car insurance premiums – especially if you consider yourself a good driver!

Another way of finding a cheaper car insurance policy is by using cashback sites such as Quidco, where you can get a percentage off your annual fee paid back to you.

Before choosing your new policy, Bobatoo also recommends that you browse our range of honest car insurance reviews.

Where can I get a cheap quote for car insurance?

Bobatoo works closely with some of the UK’s most popular insurance agencies to find you the best deal on your car insurance.

Click below to get your free, non-obligatory quote today!

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