New analysis from Which? reveals the car insurance firms where drivers are most likely to secure a cheaper price by haggling at renewal. The consumer group's survey of 2,000 UK adults found that overall, two thirds (65%) of drivers who contacted their insurer to discuss price walked away with a cheaper offer.
Top insurers for haggling success
Admiral topped the list, with seven in ten (72%) customers successfully negotiating a lower premium. The majority of those (57%) did so without making any changes to their policy. Hastings Direct followed closely, with 68% of customers seeing a reduction, and 63% of those not altering their cover. AA customers also fared well, with 65% able to negotiate a cheaper price, and nearly half (51%) of those who got a discount made no policy changes.
Other insurers in the list include Direct Line (64%), Aviva (58%), and AXA (54%).
Savings and missed opportunities
Among those who accepted a new offer, annual payers reported an average saving of £60 a year, while monthly payers achieved an average discount of £21 per month. However, nearly four in ten (37%) motorists accepted their insurer's renewal offer without challenging it, potentially missing out on savings.
The survey also found that older drivers were more likely than younger motorists to be offered a straight discount, whereas younger drivers were more likely to make changes to their policy to get a lower price. Vulnerable customers, including those with certain health conditions, in financial difficulty, or lacking confidence online, were more likely to contact their insurer about price and be offered a reduction, but they were also more likely to make policy changes to cut costs.
Industry response
Which? contacted 25 insurers about their approach to price negotiations, and only 12 said they might be receptive to negotiating prices, with fewer still explicitly stating that actual discounts could be provided. Hastings Direct said it doesn't haggle or negotiate with customers, but that "where customers have shopped around... and found a better price, we are able to consider offering a lower price".
An Admiral spokesperson said: "Our renewal prices are based on the information we hold about each customer, alongside our claims and pricing data, to ensure they are fair and accurate. We make clear in our renewal communications that customers can contact us if their circumstances have changed, their details need updating, they've found a cheaper quote or they're unhappy with their renewal terms. In these cases, we review the policy and, where appropriate, apply any available discount through a consistent, system-led process."
Sam Richardson, Editor, Which? Money, said: "Far too many of us take our car insurer's renewal quote at face value, when we should really be looking at it as an opening offer. Just a quick call to your insurer when it's time to renew could pay real dividends, with most people in our survey finding the experience of haggling straightforward. Insurers factor price negotiations into their premiums, so if you're not benefiting from a discount, the unfortunate reality is that you could well be funding someone else's."
AA, Direct Line, Aviva, and AXA have been contacted for comment.
