New FCA Rules on Insurance Renewal: What UK Drivers Must Know in 2025

The Financial Conduct Authority (FCA) introduced groundbreaking reforms to car insurance pricing in January 2022, and many UK drivers still don't understand how to leverage these changes to save money.

What Changed With the FCA Reforms?

The FCA banned the practice of "price walking" - where insurers gradually increase premiums for loyal customers who renew year after year. Now, insurers must offer renewal prices that are no higher than what they would offer to a new customer with the same risk profile.

How to Use These Rules to Your Advantage

The Loyalty Check Strategy

Even with the new rules, insurers still find ways to charge existing customers more through subtle policy changes and coverage adjustments. There's a specific way to check if you're getting a fair renewal price.

The Dual Quote Method

By getting quotes both as a renewing customer and as a "new customer" with the same insurer, you can expose any pricing discrepancies. Our guide shows you exactly how to do this.

Understanding the 'Same Risk Profile' Loophole

Insurers can still charge more if your risk profile has technically changed. Knowing which factors they use allows you to present your information optimally.

What the FCA Rules Mean for Your Renewal

According to FCA data, the average premium has decreased by £165 since the reforms. However, this varies significantly by age group and location. Younger drivers in urban areas have seen smaller reductions.

How to File a Complaint if You're Overcharged

If you believe your renewal price violates FCA rules, there's a specific complaint process that can result in refunds and premium adjustments. Most drivers don't know this exists.

The Complete FCA Compliance Strategy

Our comprehensive guide includes the exact wording to use when challenging renewal prices, templates for FCA complaints, and a breakdown of which insurers have the best track records for compliance.