Drivers are being urged to act fast on car insurance after Martin Lewis warned that prices may start climbing again. Speaking at the Ideal Home Show in London, he said the recent falls in premiums may not last, and that many motorists could still be paying more than they need to at renewal. His message was simple: do not assume your renewal quote is the best deal available.
Renewal prices may be turning again
Lewis said the recent trend in car insurance has been downward for about two years, but that the market may now be moving in the opposite direction. He said prices are about 20% to 25% lower than they were, but added that they are “about to start rising under most predictions. ”
He linked the potential rise to wider pressures, saying global shocks can feed through into insurance pricing even when a driver’s own situation has not changed. The warning matters because renewal decisions are often made quickly, and many customers accept the first figure they are given without checking alternatives.
Why a higher renewal quote does not tell the full story
Lewis stressed that a higher renewal does not automatically mean a customer is being charged illegally. He explained that the rule says an existing customer going by a channel must not be charged more than a new customer going by the same channel. But he added that this does not cover every online route, saying the rule does not apply if a driver goes to a brand new comparison site that was not where the original policy was bought.
That distinction is central to the warning around car insurance. Drivers may find a cheaper offer elsewhere, but that does not always mean their current insurer has to match it. Lewis said motorists should not assume loyalty will deliver the lowest price, and should not assume a renewal has to be accepted without challenge.
What drivers should do now
In a recent Money Saving Expert newsletter, Lewis and his team told drivers not to accept a renewal quote without checking first. They said a quick search could reveal a cheaper option, and that some motorists may be able to lock in a lower price before costs creep up further. The team said this is only worth doing if the driver has not claimed and can find a materially lower price than the one they currently pay.
The advice also pointed to a practical next step: if a better deal is found, a driver can move to the new policy and cancel the old one, usually receiving a pro-rata refund for the remaining time, minus an admin fee. If a customer wants to stay with the current provider, the team said the quote can still be used to negotiate better terms.
Consumer pressure is building
The warning lands against a backdrop of low switching rates in the motor insurance market, where many customers renew without shopping around or compare offers but still stay put. That behaviour can leave drivers exposed to overpaying, especially when automatic renewal makes it easier to do nothing. In that climate, car insurance is becoming a sharper test of whether consumers act early or let the renewal date decide for them.
For now, the message from Lewis is clear: check the quote, compare before you commit, and do not assume the first price is the final word on car insurance.
