Insider reveals trick to getting as much as £200 knocked off your car insurance

A significant number of motorists are getting hundreds of pounds knocked off their car insurance renewal quotes by employing one simple tactic, it has been revealed.

More than 60% of drivers who haggle with their insurance provider end up getting money knocked off, according to a survey by Which?

The average reduction is £64, although some achieve much bigger savings – with 5% revealing they have bagged discounts of more than £200.

Insider info

Sky recently spoke to an ex-call centre adviser who shared his number one secret for haggling effectively.

He said if you’re not getting anywhere with the adviser you’re speaking to, hang up and ring back to speak to someone else.

"Individual percentage discount and retention rates mean experiences vary between advisers.

"For example, lose too many customers in the morning, offer big discounts in the afternoon. The reverse is also true. Moral = no discount, hang up and try again."

He explained:

"At month's end, if you'd not hit the retention target, you'd offer big discounts. Conversely, if you'd given out too much discount, you'd offer little."

But is it fair?

Which? has questioned whether insurers may be breaking fair-value rules by offering better prices to people simply because they are prepared to haggle.

According to Financial Conduct Authority rules, the amount a person pays should be “reasonable compared to the overall benefits they can expect to receive”. In other words, the price of insurance should reflect the benefits offered rather than how assertive or financially savvy the customer is.

The survey by Which? also found although vulnerable customers were just as likely to be given a discount if they haggled, they were more likely to have to change their policy to secure the lower price.

They also tended to find the process more difficult than those without vulnerabilities.

Again, Which? suggests this could be problematic, as insurers have a duty to make sure outcomes for vulnerable customers are as good as for non-vulnerable customers.

Commenting on the research, deputy editor of Which? Money Sam Richardson, said:

“Some motorists may be forgiven for wondering how the first price offered by their insurer could ever represent fair value if such big reductions in the cost of cover can be achieved with a simple phone call.

“The FCA should look into this to determine whether insurers are falling short of their requirements under the Consumer Duty to offer fair value.

“While some people may feel daunted by haggling with their insurer, this research underlines how it is worth doing for many consumers and is likely to be one of the most effective ways to cut the cost of your renewal.”