As an existing customer, your renewal price will be the same or cheaper than if you were a new customer on a like for like policy.
Frequently Asked Questions
The FCA are a financial regulatory body regulating financial firms that provide products to customers to maintain the integrity of markets in the UK.
Read our handy infographic that helps explain the regulation and what it means for you.
It means you’ll always pay the same or less than you would as a new customer for a like for like policy. Here’s what we mean by ‘like for like’:
Exactly the same cover you have today including additional extras and your excess amount
The information we know about you such as your address, names on the policy and the car or home you’re insuring
The same way you set up your policy (e.g. online or over the phone)
Compared to a new customer taking out a policy on the same day, because from time to time, our prices may change
For more details, please see below.
At LV=, we’ve taken steps to make sure your renewal price is always the same or cheaper than a new customer’s quote for the same cover.
This change doesn’t mean that your price won’t increase (or decrease) at renewal or that it might be possible to get cheaper like for like cover from elsewhere. It simply means your price is the same or less than a new customer for the same cover with us. Want to know more about how your price is calculated? We’ve gone into more detail here:
Getting a cheaper quote could be due to a variety of things. Usually, it’s because the cover level or the add-ons you’ve selected are slightly different. When we work out your renewal, we use all the same details you gave us when you set up your policy (plus any changes you’ve told us about). If you do get a cheaper new quote with us for the exact same cover you currently have, then please call us and we’ll amend your renewal quote.
From time to time, your renewal price may be cheaper than the price we’d give you as a new customer to reflect our view of changing risk. The regulation states that your renewal price must be the same or cheaper than the equivalent new price.
At renewal we’ll update your details to reflect the changes we know of, such as your car and its drivers being another year older. We’ll then calculate your price using these details*.
Amount of cover:
This includes your excess amount and any additional extras you’ve bought (such as breakdown cover, or legal expenses). When you get a quote on a price comparison website, these details aren’t always included – this is one of the reasons a new quote can appear cheaper than your renewal.
Insurance prices can change frequently. This means that between your renewal price being calculated (30 days before your renewal date) and your renewal date itself, there may be changes to our prices. This could be due to inflation, the cost of claims, or a change to our view of the risk being insured. If prices go up after you’ve received your renewal quote, we’ll always honour your renewal price - as long as you renew before the expiry date. If prices go down and you find a cheaper quote from us, please give us a call and we’ll update your renewal quote.
We’ll calculate your renewal based on the information we already know about you, this includes the names, address, vehicle or home on your policy. If any of your details have changed or if we now ask for additional information for a new quote that we did not ask you when you took out your policy this could result in a different price on price comparison sites. If you do get a cheaper quote for this reason, please give us a call.
How you set up your policy: We’ll take into account how you first bought your policy and how you set up your policy. So, depending on whether you bought your policy online or in the call centre, your price may be different.
Information from external sources:
Occasionally our processes might fail, meaning the renewal price generated is not the same or cheaper than a new customer for a like for like policy. This could be due to one of our data sources not working, if this is the case, please give us a call if you’d like to discuss.
All insurers change their acceptance criteria based on the individual customer and the risks they have on their books. From time to time we’ll make decisions to stop accepting new customers or covering certain risks but we’ll always try to offer our existing customers cover where we can.
No. All insurers will have to make sure that the renewal prices for their customers are the same or cheaper than an equivalent quote for a new customer, but insurers calculate the risks of insurance differently based on their experience of claims and subsequent predictions of claims. This is why different insurers offer different prices.
Although you may be able to get a different price right now, you may have to pay a cancellation charge to cancel your current policy and take out a new one.
Over time we’ve updated the questions we ask customers when providing a quote so we can provide a more accurate price to reflect the risk we’re insuring. As we’ve not asked you these additional questions before, we’d like the opportunity to offer a new quote using our latest set of questions. This won’t affect your current policy and we’ll talk you through the quote to make sure we’re still giving you the cover you need.