How the latest FCA Pricing Practices could impact your home or car insurance renewal

It's possible, as the guidelines mean the price to renew your cover will be the same as or lower than the equivalent price for a new customer. As a result of the new guidelines, we expect overall prices for new customers to rise across the whole industry, and renewal prices to come down overall. That doesn't guarantee you'll see a drop in your price, partly because we'd already taken steps to limit price differences between new customers and those who are renewing their policy.

Also, we create our prices individually for each customer based on a whole range of factors. This is where our size and experience as an insurer really shines through, as we can use the information we've built up to match each customer's price to their specific circumstances. So we're confident that we price each quote accurately, both for our new customers and those who are renewing with us.

There could be a whole number of different reasons, including, but not limited to, the new regulations which affect all insurance providers.

As one of the UK's largest insurers, we insure millions of vehicles and homes for our customers, all over the country. This gives us a huge amount of knowledge and data, painting a detailed picture of what the risks are and how these change from year to year, and from area to area. We have confidence that our customers' premiums are both accurate and up-to-date, and may mean you see differences in your price as these risks change.

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Prices don’t always change because of something you’ve done. For example, more overall claims in your postcode during the last year could have made your price go up. There are also external factors – such as a changing claims market, more expensive repairs, severe weather and changes in law – that might mean your insurance costs more.

Being one of the UK's largest insurers, we're confident that we price our customers' premiums accurately. This is down to the huge amount of information we have, which is constantly updated.

The new regulations mean that insurers, including us, have had to change how prices are calculated. As a result, we expect overall prices for new customers to rise across the whole industry, and renewal prices to come down overall. The biggest difference is likely to be in the first renewal after the change of regulations. This doesn't necessarily mean that your renewal price will be lower, as there are other factors at work – such as a changing claims market, more expensive repairs, severe weather and changes in law – even if you haven't made changes to your policy.

No. Your renewal price will be the same as or lower than an equivalent price for a new customer, in line with the latest guidelines. A loyalty penalty would mean that your renewal price would be higher than an equivalent price for a new customer.

We welcome these changes to the regulations, as it should mean better outcomes for our customers who choose to renew their policy with us.

No. Price walking would be where your premium goes up at renewal rather than in line with changes to your risk. The new regulations mean that your renewal price will be the same as or lower than the equivalent price for a new customer, which helps prevent price walking.

If there's a sizeable difference between your renewal price and the new customer quote price you received from us online, it's worth checking that your new quote includes all the same cover as your current policy. You must make sure any quote meets your needs. If you're already insured with us, you can review and make changes to your existing cover at any time.

There are other factors that could result in different prices. For example, on the day we calculate your renewal price, usually 30 days before your policy ends, we check it against the equivalent price for a new customer. If you get a new customer price at a later date, prices may have changed since the original calculation date.

If you're an AvivaPlus customer, when you bought your policy it may have included a Renewal Price Guarantee, which meant the renewal price would be matched to the price we'd offer if you were a new customer.

Instead of the Renewal Price Guarantee, we're pleased that new industry rules, which came into force on 1 January 2022, will ensure that all home and car insurance customers' renewal prices will be the same as or lower than the equivalent price for a new customer, in a similar way to our AvivaPlus Renewal Price Guarantee.

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It’s likely that the policy you’ve seen is not the same as yours. The insurance product we offer directly is different to the product we offer through price comparison websites.

Whichever product you have, we’ll make sure it’s priced in line with the latest regulations.

You can always get a quote from other insurers. Just make sure you check that any quote meets your needs. If you're already insured with us, you can review and make changes to your existing cover at any time.

No. Your rights haven't been affected by this decision. If your complaint is still ongoing, there shouldn't be any difference to how it's handled. If it's already been closed, there's more about this in the letter we sent to you after we closed your complaint.