Car Insurance Switching: Why It’s at an All-Time Low

The UK insurance market is now moving in a new direction. Most people did not see these changes coming.

New research says that switching motor insurance has dropped to the lowest level ever. This is a big change in how people now shop for and renew their insurance. According to the latest data from Consumer Intelligence, only 33% of drivers changed their car insurance provider this year. Almost 50% of drivers switched car insurance in 2024, which is much higher than now. Home insurance switching has also gone down, now at 36%. People who are 65 or older switch even less, going as low as 27%.

The report calls this change “the end of churn.”

For years, many people in the UK liked to change their car insurance every year. They would check prices, choose new companies, and often save some money. Now, more people are keeping the same plan, even though the price is sometimes higher when they renew.

This article explains:

• There are not as many drivers who change their car insurance providers now.
• The new rules from GIPP (General Insurance Pricing Practices) have made a big change in the way companies set prices.
• Insurance companies are now putting their time into treating their customers well and keeping them, rather than just offering the lowest price.
• To make sure you do not pay too much, you need to compare quotes in the right way.
• If you shop for car insurance when it is time to renew, you can still keep your cost lower.

We will show you how to look at different car insurance options. You can see if there is a cheaper deal for you. Free Price Compare checks prices from many car insurance companies.

Why has car insurance switching declined?

Car insurance switching has seen a slow drop since the start of 2025. Consumer Intelligence says this is because of three big changes.

1. Price triggers are not as strong now.
2. The service and claims process is better.
3. Customers feel less need to look for other options.

Before 2022, many of the insurers had used a pricing plan called the “loyalty penalty.”

Existing customers pay more than new people. This happens just because they do not change companies.

The Financial Conduct Authority (FCA) stopped this practice with the General Insurance Pricing Practices (GIPP) rules. Now, insurance companies have to give the same price to you when you renew as they do to new people. This is true if you buy the same product the same way, online or offline.

The GIPP rules were meant to protect customers.

They did.

But they also triggered an unexpected shift:

Fewer people want to switch now because the renewal prices do not go up by a lot anymore.

Many drivers find their renewal and notice the price is not much higher. They take it and move on.

Shopping around is falling too

The same study shows that:

• 72% of drivers now look at quotes before they renew. Last year, it was 85%.
• 70% of home insurance customers look at other options. Last year, that number was 80%.

This is important because, even if renewal prices go up, not many people go online to look at other options.

That ends up making the customer stick with the insurer. It means he or she will renew the policy without asking questions about the price.

Drivers are staying with insurers for reasons other than price

While price was once the most important thing people looked at, now research shows that people think about more things.

• Service quality
• Claims experience
• Perceived convenience

13% of people who have home insurance left because they were not happy with the way their claim was handled.
8% of those with motor insurance moved to another company for the same reason.

But the reverse is also true:

• 14% of drivers chose to stay with their insurer. A good claims experience made them feel comfortable and helped them make that choice.
• 16% of people with home insurance also stayed with their provider for the same reason. A positive claims process made
  them feel good about their choice.

Claims experience used to be something most people did not think about much. But now, the way a company handles claims can shape if customers stay with it or not. A good or bad claims experience can make people feel good about a company, or feel let down. In today’s world, claims experience is more important than ever. People now look at this when they decide to stay loyal to a company or move to another option.

Check your eligibility for car insurance and get quotes — takes 1 minute.

The loyalty penalty is gone — but a new issue has emerged

When GIPP was introduced, many consumers believed:

This is rarely true.

The rules say that insurance companies must give the same price to both new and old customers if they buy using the same way.
They do not say that these companies have to give the lowest price in the market.

For example:

• If you renew straight with them, you will get a renewal price.
• If another person buys using a price comparison site, they might get a lower price.

Same insurer.
Same product.
Different price.

Why? Because comparison platforms make it easy for companies to compete with each other.

Customers are keeping insurance longer — even when premiums rise

The report forecasts:

• Motor insurance switching will level out at 30–35%.
• Home insurance switching will settle at 35–40%.

This indicates a structural, long-term shift.

Drivers are becoming more passive.

They think the renewal price is fair. This is because people are not told to switch as much now.
Insurers see this kind of action and use it. They want to invest in loyalty plans.

• Retention teams work with you to keep your business.
• Loyalty offers let you save more over time.
• Multi-policy bundling helps you spend less. For example, add home insurance and save a set percent.

Having more products can help a customer stay. So, each extra product they use may make them stay up to 15% longer.

This is what they call “stickiness”. Insurers really like stickiness.

Compare Car Insurance

Save up to £518* on your car insurance

Compare Quotes Retrieve Quote

Why switching fell: psychology and pricing

The fall in switching is not by chance. The drop happens because of things people do and feel, which is shown in behavioural economics.

Here’s what’s happening:

• Loss aversion makes people stay with their provider.

Most people feel a loss more than a gain. They worry, “What if I change something and it’s worse?” This is true even when it’s clear that they can save money.

• Customers are experiencing price fatigue

2023–2025 brought rising prices across:

• Car insurance
• Home insurance
• Energy bills
• Broadband
• Groceries

Consumers are tired of shopping around.

Insurance feels like a “necessary admin job”

Drivers often do not like to look at quotes. A lot of the time, they just renew their old policy.

But here’s the problem: complacency costs money

Even in 2025, even though renewal prices may be steady:

47% of the people with a car policy got a lower price when they changed companies.

Price is still there.
The price is just not seen because people often stick to what they know and don’t try new things.

Insurance remains one of the few bills where you can still save money

You can’t change your council tax by talking with someone.

You can’t talk with your lender to get a new mortgage rate.

But car insurance?

You can challenge it every year.

Comparing quotes can:

• Lower your premium
• Increase your cover level
• Get better optional extras (breakdown, courtesy car, legal cover)

And because comparison sites put insurance companies side by side, they feel pressure to offer better prices. This ends up helping you.

Compare car insurance quotes — see if you can get a lower premium.

Why comparing quotes still matters — even in a low-switching market

Drivers can still reduce their premium by:

• Shopping 21–26 days before renewal
  You should look for new insurance about 3 weeks before it renews. This is a good time to get a cheaper deal.
• Adding another named driver (if low risk)
  You may be able to save money if you put another driver on your policy. It works best if that person does not get into accidents often or take big risks.
• Switching to telematics (black box insurance)
  If you switch to a black box plan, the company looks at how you drive. It can help lower what you pay if you drive safe.

Even if not as many people are changing how they shop now, the ones who keep looking around still find the best deals.

They are taking advantage of:

• Our prices are good for what you get.
• You will find lower prices when you check our deals with the others.
• New sellers sometimes will give you cheaper prices for a short time.

The data says that the most money can be saved when you compare car insurance prices early. You should not wait until your renewal date.

Why fewer people are switching — but why you still should

Switching will always be worth it because:

1. Insurers set their prices by looking at risk and how much money they want to make.
2. When the time comes to renew, most people pick the simple choice.
3. New customers can sometimes get lower prices when they use price comparison sites.

Insurance companies want to keep customers coming back. But you should focus on growing your savings instead.

How to reduce your car insurance renewal price

• Compare quotes (don’t assume your renewal is best)

Even with GIPP rules, insurers can still give different prices in different sales channels.

• Update your mileage

Accurate yearly mileage helps make sure you do not pay more than you should.

• Check add-ons you don’t need

Get only the legal cover you need. Skip things like cover for your windscreen or a courtesy car. Take out extras that you do not need. This will help you save money.

• Adjust your voluntary excess

A £250–£350 excess helps make lower premiums possible. This range won’t make it too hard to pay if you need to make a claim.

• Pay annually where possible

Getting rid of monthly credit charges can help you save up to 15%.

See how much you can save. It is easy to compare car insurance today.

Why switching will never disappear completely

Even if the switching rate drops to 30–35%, there will always be:

• Life changes happen. You might get a new car, move to a new address, or have a new driver in your family.
• Prices can go up or down. This is because risk models from insurers always keep changing.
• The market can change fast. New companies come in and try to challenge the ones already there.

Insurance could be moving into a time where people want to stay with the same company. But, when people compare the options, there will still be some competition.

And competition lowers prices.

Did car insurance prices go up in 2025 and how does this affect switching behaviour?

Yes, car insurance premiums have gone up again in 2025. In the UK motor insurance market, the price of car insurance increased because of some main reasons that came up in tracking UK motor insurance market pricing trends.

• Higher vehicle repair costs
• Increased cost of claims because car parts now cost more
• Claims inflation, especially for newer vehicles that need technology-based repairs

Data from the insurance sector shows that the cost of claims and the time for car repairs keep going up. This makes insurance premiums rise too, because insurers need to include rising claims when they work out their prices.

The Association of British Insurers (ABI) said that motor insurers paid out more money on claims last year. This was because of inflationary pressures and higher labour rates at repair garages.

And here’s the link to the switching slowdown:

• When prices go up in the whole market, people do not switch as much.
• There is not just one cheaper insurer. Every company has higher prices now.

Drivers see that last year’s premium and this year’s renewal price are about the same. So, they do not feel much need to change their plan. But, if they compare quotes, they could still save some money.

Compare Car Insurance

Save up to £518* on your car insurance

Compare Quotes Retrieve Quote

Are there new regulations affecting how often people switch motor insurance providers?

Yes. The GIPP (General Insurance Pricing Practices) rules set out by the regulator changed the way insurers set their policy prices. These new rules say that insurers cannot charge customers who renew their policies more than what new customers pay for the same product and through the same way of buying.

This means:

• The renewal prices now seem better.
• Less drivers feel the need to look for other options.

Insurers are now putting focus on things other than price. Instead of just trying to be cheaper, they want to stand out in other ways.

• Customer value
• Service excellence
• Claims handling
• Cross-product or partnership strategies (bundles, multi-policy discounts)

These rules have changed the motor insurance industry a lot. Now, prices are closer to each other. A lot of people do not switch their motor insurance as much as before. This is not because they do not save money, but because the price looks nearly the same at first when they check.

FAQs about car insurance switching in the UK