If you drive a car in the UK, it’s compulsory to have car insurance. Third party insurance protects other road users in case you have an accident that causes them injury, or damages their vehicle. Drivers also have the option of buying additional cover for fire and theft, or comprehensive insurance which covers you and your vehicle if you cause an accident.
In recent years many drivers have been victims of price-walking by car insurance providers, which saw millions pay over the odds when their policies auto-renewed each year. The General Insurance Pricing Practices (GIPP), introduced by the Financial Conduct Authority (FCA) in 2022, effectively banned price-walking. However, there are still ways to make sure you’re getting the best value for money on the car insurance you require.
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There are around 100 car insurers in the UK, but in 2022 the top 10 providers accounted for around 70% of the market. Insurers are jointly regulated by the Bank of England Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA).
<aside> 🛠️ For the most up-to-date practical advice, read our guide to Saving money on car insurance
<aside> <img src="https://s3-us-west-2.amazonaws.com/secure.notion-static.com/9ae4fcda-a6c4-4f18-83fd-b67c9dc3e0b5/arch-yellow.png" alt="https://s3-us-west-2.amazonaws.com/secure.notion-static.com/9ae4fcda-a6c4-4f18-83fd-b67c9dc3e0b5/arch-yellow.png" width="40px" /> By our estimates, a typical household could save £202 by switching car insurance provider.
Thanks to the General Insurance Pricing Practices (GIPP), introduced by the Financial Conduct Authority (FCA) in January 2022, car insurance providers can no longer increase premiums for existing customers at the end of an introductory contract. Instead, insurers now have to offer existing customers fairer deals, in line with what new customers are offered as their introductory rate. They also have to make it more accessible for customers to cancel an auto-renewing contract.
This has provided much needed protection for households, and you’re now unlikely to be ripped-off by price-walking to the extent that was so prevalent in recent years.
However, just because your insurer has to offer you a fairer renewal price than in recent years, that doesn’t mean there aren’t better deals available. It’s still worth keeping track of your renewal date and evaluating what insurance you need. When it comes to shopping around for a better deal, there are a few top tips to bear in mind: