New analysis from Which? reveals that around seven in ten (72%) Admiral customers managed to secure a reduced premium at renewal, with the majority (57%) of those not making any policy changes.
Other Insurers with High Success Rates
Two thirds (68%) of Hastings Direct customers saw a reduction, and around six in ten of those (63%) did not make updates to their level of cover. A similar proportion (65%) of AA customers were also able to negotiate a cheaper price, with nearly half (51%) of those who obtained a discount making no policy changes whatsoever.
Overall Haggling Success
Overall, the Which? data shows two thirds (65%) of drivers who contacted their car insurer in the last year to discuss price walked away with a cheaper offer. Amongst those who accepted a new offer, those paying annually reported an average saving of £60 a year, and those paying monthly achieved an average monthly discount of £21.
However, nearly four in ten (37%) motorists accepted their insurer's renewal offer without challenging it - and could therefore be missing out on savings.
Differences Among Drivers
Which? also discovered that older drivers were more likely than younger motorists to be offered a straightforward discount, while younger drivers were more inclined to adjust their policy in order to secure a lower price. Vulnerable customers, which can include those with particular health conditions, experiencing financial hardship or lacking confidence online, were more likely than other customers to contact their insurer regarding their price, and to receive a reduction following the conversation. Nevertheless, they were also considerably more likely to make alterations to their policy to reduce costs.
Which? conducted a survey of 2,000 UK adults.
Expert Comment
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."
Insurer Stances
Which? approached 25 insurers to enquire about their stance, and only 12 indicated they might be open to negotiating prices, with even fewer explicitly stating that actual discounts could be offered.
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."
AA, Direct Line, Aviva and AXA have been approached for comment.
