The loyalty penalty ban: renewing insurance
Since 1 January 2022, FCA rules stop home and car insurers charging you more to renew than they’d charge an equivalent new customer through the same channel. It ended “price walking”, but it doesn’t make your insurer the cheapest: another insurer may still offer a lower price, so comparing at renewal still pays.
By the billsqueeze team · Facts checked: 31 October 2026 · Updated:
- Since 1 January 2022, home and car renewal prices can’t be higher than the price for an equivalent new customer.
- It applies to home and car insurance, not pet, travel or private health insurance.
- You must be able to stop auto-renewal as easily as you bought the policy.
- Other insurers may still be cheaper, so compare at renewal.
What the rules say
Since 1 January 2022, Financial Conduct Authority (FCA) rules mean an insurer can’t offer you a renewal price for home or car insurance that’s higher than it would charge an equivalent new customer buying through the same channel, such as its website or a comparison site. Before this, many insurers raised prices each year for loyal customers, known as price walking.
What it covers
- Home and car insurance renewals.
- Renewal fees: a fee for renewing can’t be higher than an equivalent new customer would pay.
- Auto-renewal: you must be able to stop it at least as easily as you bought the policy, for example online if you bought online.
Pet, travel and private health insurance aren’t covered by the renewal pricing rule.
What it doesn’t mean
- It doesn’t freeze your price: premiums can still go up for everyone.
- It doesn’t mean your insurer is the cheapest. It only compares you with its own new customers, so another insurer may still offer a lower price.
How to use it at renewal
- Read your renewal notice and compare the price with last year’s.
- Get quotes from other insurers about three to four weeks before renewal.
- Switch, or stay if it’s cheaper, and turn off auto-renewal if you move.
billsqueeze doesn’t give insurance advice or recommend policies. This guide is general information; check the policy wording before you buy.
Get a reminder before you renew
Add your renewal date and we’ll email you before it comes round, so you have time to compare.
Common questions
Can my insurer charge me more for renewing?
Not for home or car insurance. Since 1 January 2022 your renewal price can’t be higher than the price for an equivalent new customer buying through the same channel.
Does the rule cover pet insurance?
No. The renewal pricing rule covers home and car insurance only.
Will my premium still go up?
It can. The rule stops insurers charging loyal customers more than new ones; it doesn’t stop prices rising for everyone.
Is it still worth comparing at renewal?
Yes. The rule only compares you with your insurer’s own new customers, so another insurer may be cheaper.