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You’d hope that being a loyal customer might result in lower premiums when you renew your car insurance – but you might find the opposite is true.
Despite a ban a few years ago on insurers penalising existing customers, some car insurance companies are finding loopholes that allow them to charge returning customers more than new ones for the same policy.
The Financial Conduct Authority (FCA) introduced rules in January 2022 preventing insurers from overcharging returning customers for their policies, after finding 6m UK customers who stuck with their provider had overpaid by over £1 billion in 2018 alone. Insurers would offer lower premiums to new customers to entice them to switch from their old providers, then gradually ramp up the cost over each renewal period.
Welcome though these rule are, don’t just renew your current policy without seeing if you can find cheaper cover elsewhere.
In this article, we’ll explain four of the most common ways some companies get away with charging existing customers more, based on when and how you apply for cover, and how you can ensure you don’t end up paying over the odds.
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If you’re looking for cover, Saga has been providing car insurance for people over 50 for more than 30 years. All three of its comprehensive cover levels were named Which? Best Buys in January 2026, with Saga Plus and Saga Select at the top of the table. With 99% of claims paid last year, it’s no wonder more than one million drivers trust Saga.
How you buy car insurance
There are several different methods you can use to apply for a car insurance quote, with phone and online applications via the insurer’s site or a price comparison site the most popular.
Insurers can – and do – vary premiums depending on the type of channel you use to sign up with them. They only have to keep rates the same between old and new customers if they are both using the same channel to access the same policy.
If your car insurance is up for renewal or you need a new policy, it’s worth doing plenty of research so you can be certain you’ve found the best possible deal to suit your needs. Comparison websites such as MoneySuperMarket, Uswitch and Compare the Market enable you to compare car insurance quotes, whether you’re looking for third party, third party fire and theft, or comprehensive cover.
The date
Even with the new rules in place, insurers are still allowed to change the rates they offer you depending on how close you are to the start date of the cover.
There’s usually a sweet spot when it comes to picking the date that you renew your policy. Leaving it too late and renewing a policy right before the desired start date is likely to be expensive, because insurers might take that as a sign that you’re disorganised or impulsive. But doing so at the earliest possible moment – usually around a month in advance – tends to be pricier too.
According to research carried out by MoneySavingExpert, the best time to renew is actually 20-26 days before the policy start date, and could save you up to 40% compared to renewing later on. Find out more in our guide When is the best time to renew your car insurance?
Car insurance you can count on from Saga
Whether you’re buying a new car or looking to get new car insurance, Saga offers three Comprehensive cover levels, which are all Defaqto 5 Star rated. Saga Plus comes with a 2-year fixed price, if nothing changes. 99% of claims paid in 2025. Trusted by over 1 million drivers.
The time of day
It’s not just the date, however, that can have a bearing on the cost of your premiums. Even the time of day that you renew a policy can make a big difference to your quote.
Prices fluctuate throughout the day, based on demand and the type of drivers applying. Because of this, searching for quotes in the late afternoon and evening might result in costlier deals than if you’d searched in the morning, because by this time insurers are likely to have signed up several new drivers already.
That’s not to say it’s as simple as first-come first-served, however. Searching in the very early morning might raise concerns with insurers about your sleeping habits and could see you hit with higher rates. For the best results, try taking a look at rates around breakfast or lunch time.
Add-ons
The new rules only apply to policies that are the same, meaning that if your policy has any add-ons, it could still cost more to renew than a no-perks policy purchased by a new customer.
Some firms will go ahead and stick these add-ons onto your policy over the years and charge you accordingly, even if you haven’t requested them. Always review your policy carefully to make sure you aren’t paying for any features you haven’t specifically asked for, or see if you’re still paying for any that you no longer feel you need. Find out more about car insurance add-ons in our guide What are the best car insurance extras and add-ons to have?
What can I do to avoid being overcharged?
Following the advice above can give you a real edge when it comes to renewing your insurance and dodging increased premiums. To recap, that means checking a few different price comparison sites in the morning around 24 days before you want cover to start, and making sure that no unnecessary add-ons are included in the policy.
There are still more ways to keep car insurance costs down, however. Our article 10 practical tips to reduce your car insurance premiums contains a variety of useful and easy ways to make sure you don’t end up paying more than necessary.
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If you’re looking for cover, Saga has been providing car insurance for people over 50 for more than 30 years. All three of its comprehensive cover levels were named Which? Best Buys in January 2026, with Saga Plus and Saga Select at the top of the table. With 99% of claims paid last year, it’s no wonder more than one million drivers trust Saga.
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Saga Car Insurance is a Which? Best Buy
Saga Plus and Saga Select cover levels top the Which? Best Buy car insurance comparison table. Saga Standard is up there too, so you know whichever you choose, you’re making a great choice.
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