The 1 step when buying car insurance that could save you £64 or more

Motorists are receiving hefty reductions on their car insurance renewal quotes by doing one thing, according to new analysis by consumer watchdog Which? Some drivers were receiving quotes up to £200 cheaper by ringing up insurers and asking for a better price.

Haggling with insurance firms appears to be paying off, with the average motorist saving £64 per year by tying their luck. However, research finds that many road users were saving a lot more, with many enjoying discounts of well over £100. However, Which? has warned that insurers may be in breach of the Financial Conduct Authority’s (FCA) Consumer Duty rules, which came into force in July 2023.

The watchdog believes there are “serious questions” about whether the first offer from the insurer can really represent fair value if discounts are awarded soon after.

Sam Richardson, Deputy Editor of Which? Money said: “Some motorists may be forgiven for wondering how the first price offered by their insurer could ever represent fair value if such big reductions in the cost of cover can be achieved with a simple phone call.

“The FCA should look into this to determine whether insurers are falling short of their requirements under the Consumer Duty to offer fair value.”

Research by Which? found that a staggering six in ten (59%) respondents admitted they had haggled with their insurer.

Three-fifths (61%) of those who contacted their insurer were successful in getting a reduction to the original offer approved.

The survey found that just over one in five road users (22%) said they tended to save between £20 and £40 off an insurance firm's first offer.

A further 22% said that they tended to save between £40 and £60 off their total quote.

One in 10 (11%) said they got more than £60 and up to £80 off, while 9% saved between £80 and £100 off a policy.

However, 3% said they were able to secure a discount between £100 and £120.

An eye-watering 5% said they were able to save more than £200 after getting in touch with their providers.

Sam added: “While some people may feel daunted by haggling with their insurer, this research underlines how it is worth doing for many consumers and is likely to be one of the most effective ways to cut the cost of your renewal.”