The Financial Services Consumer Panel has released research that shows significant price hikes for consumers at renewal, with average increases of 27% for car, 22% for home, and 13% for travel insurance. The FSCP said the fact that 85% of consumers who negotiated with their provider received a reduction raised questions on the value offered initially.

Jonathan Hewitt, workgroup chair and panel member of the FSCP, said: “Shockingly, the average increase for those in the top quartile of car insurance renewals was a staggering 74% price surge.

“Negotiation emerged as an effective but underutilised strategy, with 85% of consumers who negotiated securing reduced prices.

“These findings prompt a critical reflection on the value-for-money of the initial renewal quotes and the implications for non-negotiating consumers. The panel has issued seven recommendations to the FCA aimed at enhancing transparency, outcomes, and value for money in insurance products.”