FCA pricing rules: what they mean before your car insurance renews
A dated note on what the FCA's general insurance pricing rules cover at a UK motor renewal, and why the renewal date itself is still the active decision point.
Published 1 January 2026
What changed
Under the FCA's general insurance pricing rules, the renewal price an insurer offers for motor cover must be no higher than the equivalent new-customer price from the same insurer through the same channel.
The rule binds insurers to a price relationship at renewal, but it does not remove the renewal date as the moment the premium is recalculated for risk, claims history and underwriting changes.
What it means before the renewal date
The renewal date is when the insurer applies its renewal pricing model and books the auto-renewal. Reading the renewal notice before that date is the only natural review point in a twelve-month motor policy year.
The pricing rule does not stop the premium changing year-on-year — it constrains the comparison with the same insurer's new-customer price. Whether the new premium is reasonable for the household is still a decision that has to be taken before the date.
What to do now
Check the renewal date and the new premium on the renewal notice.
Check whether the policy is set to auto-renew on that date.
Check that cover level, excess and named drivers still match how the car is used.
Related pages
Car insurance reminders
Track your car insurance renewal date so the next change is on your calendar, not the provider's.
Car insurance renewal price report 2026
Evidence on how UK prices move at this renewal — what households are paying and why.
When to review car insurance before renewal
A short guide to the dates, terms and decisions behind this renewal.
Sources
- FCA — General Insurance Pricing Practices (PS21/5). FCA rules require renewal prices for home and motor insurance to be no higher than the equivalent new-customer price from the same insurer through the same channel.
- FCA — A new Consumer Duty (PS22/9). Firms must act to deliver good outcomes for retail customers across the product lifecycle, including renewal.