← All guides · Updated 2 November 2026
Insurance renewal price gone up? What the FCA rules say
Your car or home insurance renewal has arrived and the price has gone up. Before you accept it, it helps to know what the rules do, and don't, protect you from.
The FCA rule: no "price walking"
Before 2022, many insurers raised prices for loyal customers year after year while offering cheaper deals to new customers. The Financial Conduct Authority (FCA) called this "price walking" and banned it. From 1 January 2022, FCA rules say an insurer must not set a renewal price that is higher than the equivalent new business price, meaning the price a new customer would be quoted for the same cover, through the same sales channel (for example, the insurer's website, or a particular comparison site).
The rule covers home and motor insurance sold to consumers, including add-ons sold with them. It doesn't cover commercial policies.
What the rule doesn't do
- It doesn't stop prices rising. If costs go up for everyone, new customers and renewing customers can both pay more.
- It doesn't mean your insurer is the cheapest. Other insurers may still offer a lower price. The FCA itself says you can still shop around and negotiate.
- It compares like with like. Same cover, same channel. A price on a comparison site may not be directly comparable with the insurer's own website.
What to do with your renewal notice
- Check last year's price. Your renewal notice should show it.
- Check what's changed. A claim, a new address, a new car, a new driver or penalty points can all change the price legitimately.
- Get comparable quotes from comparison sites and from insurers that aren't on them, with the same cover level, excess and add-ons.
- Ask your insurer to match or explain. Ask it to confirm that your renewal price meets the FCA rule and to explain why your premium changed.
- Turn off auto-renewal if you're not sure. The FCA also made it easier to stop auto-renewal.
Don't just compare the price
A cheaper quote may have a higher excess, lower cover or fewer extras like courtesy car or legal cover. Check the policy details before you switch.
Paying monthly?
If you pay monthly, you may be paying interest through a credit agreement. Check the total amount payable on your renewal notice: paying annually, if you can afford it, is often cheaper.
If you're unhappy
Complain to your insurer first. If it doesn't resolve it within eight weeks, or sends a final response you disagree with, you can usually take it to the free Financial Ombudsman Service.
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Check your own bill
Enter this year's and last year's price and any quote you've found. Bill Fighter shows the change and writes a letter asking your insurer to match it or explain.
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Related guides
Sources
- FCA: fairer home and motor insurance renewals
- FCA Handbook ICOBS 6B
- Financial Ombudsman Service: how to complain
Last checked 02/11/2026. Rules change, so check the linked pages before you act. This is general information, not financial or legal advice.