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What is loyalty costing you?

Insurance renewal quotes have a habit of creeping up. Put your renewal price next to the best quote you can find for the same cover, and see the gap — plus what it adds up to if you renew on autopilot.

£
£
yrs
Loyalty is costing you
£0
per year
Over 5 years on autopilot£0
—

A guide based on the two prices you enter — compare like-for-like (same cover and excess). Not financial advice.

What the number means

The gap between your renewal and the best comparable quote is what staying put is costing you this year — and, if you renew on autopilot, it tends to repeat and grow each year. Since 2022, FCA rules stop insurers charging you more than a new customer for the same policy, but the wider market still varies, so your renewal is rarely the cheapest price out there.

Tip. Found a big gap? You don’t always have to switch. Call your insurer, say you’ve found the same cover cheaper, and ask them to match it — keeping you is cheaper for them than finding someone new.
Watch out. Compare like-for-like. A cheaper quote that quietly raises your excess or drops cover isn’t really cheaper. General information, not financial advice.

Next steps

Frequently asked questions

What is the insurance loyalty penalty?

It’s paying more than you need to simply for staying with the same insurer. Since January 2022, FCA rules stop insurers charging existing customers more than a new customer for the SAME policy — but the wider market still varies, so your renewal often isn’t the cheapest price available. The "penalty" today is the gap between your renewal and the best quote elsewhere.

Didn’t the FCA ban the loyalty penalty?

It banned the worst of it (price-walking) for home and motor insurance in 2022. But prices still rise year to year, and a rival insurer can simply be cheaper for your risk. Comparing every year still routinely beats accepting the renewal.

What should I do if the gap is big?

Get a like-for-like quote (same cover level and excess), then either switch, or call your insurer and ask them to match it — keeping a customer is cheaper for them than finding a new one, so they often will.

Sources