Millions of people open their insurance renewal letter expecting a higher price and feel relieved when the increase is smaller than feared. But Martin Lewis, founder of MoneySavingExpert, says that way of thinking is costing people money they do not need to spend.
In a clip shared on his official TikTok from his Martin Lewis Money Show Live on ITV, he presented data showing insurance prices have actually been falling — and issued a direct warning to anyone who has been quietly accepting renewal quotes without questioning them.
Martin walked through what has actually happened to insurance prices. Around three years ago there was what he described as 'a massive ramp in prices — up nearly 60% on car, up nearly 50% on home.' That surge has since started to smooth off. Looking at the past year, 'home is down 3%, car is down 11%,' he said.
Despite those falls, Martin said people have been conditioned to keep expecting rises. 'We've been programmed to think each year, yeah, it's going to go up and up and up,' he said. 'You get your renewal quote and you go, well, it's only gone up 5% this year. Winner, winner, chicken dinner. But no, what should be happening to you right now is it should be coming down.'
His warning to anyone receiving a renewal notice was direct. 'When you get your renewal, if nothing else has changed, you want to be expecting to see your price being cheaper than last year. And even if it's the same as last year, that's actually you paying too much,' Martin said.
He added: 'My aim today is to reprogram you to expect cheaper prices, not higher prices from this point onwards.'
Martin's point is straightforward. A renewal quote that is the same as or higher than last year is not something to accept without shopping around. Car insurance has fallen 11% in the past year meaning anyone paying more than they were twelve months ago for the same cover is almost certainly overpaying.
Using a comparison site when a renewal notice arrives, getting quotes from multiple providers and using any cheaper quote found as leverage with an existing insurer before switching is the most effective approach.
A spokesperson for insurance experts UK Sure added: 'Martin is highlighting something really important here. A lot of people have been conditioned to expect their insurance to go up every year and simply accept it. The reality right now is that prices have been falling and anyone who has not shopped around recently may well be paying more than they need to. Checking the renewal figure against comparison site quotes before accepting anything takes only a few minutes and could result in a meaningful saving.'
