From January 2022, all insurers must make sure the price they offer existing customers at renewal is no higher than what they would be offered when buying a new policy if the information and cover is the same. In the insurance industry, this rule change is known as Pricing Practices Regulation, or PPR.
The rule change also means all insurers must make it clearer and easier for customers to cancel automatic renewals.
You can find out more from the FCA (Financial Conduct Authority) website.
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What does it mean for me?
Basically, if we offer you a renewal price, it will be no higher than if you had come to us to get a new quote.
It's important to note, that this can be affected by a number of factors, including:
- The timing of the quote (prices may have changed since the renewal price was calculated).
- The cover would need to be exactly the same.
- Your own details you provide for the quote would need to be the same as those that we already hold for you.
- Prices can be different for customers who buy over the phone than those who buy online.
What does the automatic renewal change mean?
It will be easier for you to cancel the automatic renewal of your policy at any time over the phone or online.
If you don't select automatic renewal, you will still get a renewal invite before the policy end date. However, cover will stop on the policy end date if you haven't contacted us to renew it.
If you do choose the convenience of automatic renewal, your renewal price won't be any higher than one given to a new customer with like-for-like details, and you won't need to contact us next year to renew your policy.
Which types of insurance are affected?
The rules around renewal pricing apply to home insurance, car insurance and van insurance customers (as long as the van cover is for social domestic & pleasure).
The rules around automatic renewals apply to all general insurance products except pet insurance because customers could lose cover for pre-existing conditions if they unintentionally don't renew.
Do these changes mean my price will never go up?
No. Your premiums can still go up or down based on the details you give us and external factors such as the cost of repairs or rate of inflation.
The important thing to remember is, you'll never pay more than if you were a new customer with the same information and cover.
Do you have more questions about pricing or automatic renewal?
Have a look through these FAQs or ask a question in the search box above.
Frequently asked questions
Price walking, or dual pricing, is the situation where a new insurance customer may receive a more competitive or cheaper premium than a customer who is renewing their cover.
From January 2022, all insurers must make sure the price they offer existing customers at renewal is no higher than what they would be offered when buying a new policy with the same information and cover.
The rule change also means insurers must make it clearer and easier for customers to cancel automatic renewals.
You can find out more from the FCA (Financial Conduct Authority) website.
No, these new rules apply to all insurers for motor, home and van insurance (as long as the van cover is for social domestic & pleasure).
There are a number of potential reasons why this could have happened, including:
- The timing of the quote (prices may have changed since the renewal price was calculated).
- The cover would need to be exactly the same.
- Your own details you provide for the quote would need to be the same as those that we already hold for you.
- Prices can be different for customers who buy over the phone when compared to those who buy online.
No. Your premiums can still go up or down based on the details you give us, and external factors such as the rate of inflation. However, your price will not be more than if you were a new customer.
Your renewal price will be the same as a policy under the same conditions. This means:
- Compared to a new customer on the same day (market prices can change from day to day).
- The way the policy is set up (over the phone or online).
- The same cover you have today, including add-ons and excess.
- The information we know about you, including your address and the car, home or van you're insuring (as long as the van cover is for social domestic & pleasure).
If you choose the convenience of automatic renewal, your renewal price won’t be any higher than one given to a new customer with like-for-like details.
If you don't select automatic renewal, you'll still get a renewal invite before your policy end date. However, cover will stop on the policy end date if you haven't contacted us to renew it.
If you do choose the convenience of automatic renewal, then you will not need to contact us next year to renew your policy.
Our prices are reviewed each year and can go up or down, based on our costs and the conditions of the market. Prices are also based on several factors relating to you, your surroundings, as well as the value of your car, home, van or personal belongings (as long as the van cover is for social domestic & pleasure).
Please note that your renewal premium will not be more than what we would charge you as a new customer.
When it's time for you to renew, we'll check your renewal price against the price you would get as a new customer based on your information, cover type and how you set up your policy.
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