The Money-Saving Expert has highlighted that a car insurance quote matching last year’s price could actually be a significant overcharge.

With the cost of living crisis biting and households tightening their belts, the news that your car insurance isn’t going up might seem like a rare piece of good news. But this could actually mean you’re unwittingly paying more than necessary.

At the beginning of 2025, car insurance premiums saw the biggest decrease in the last decade. This downward trend has persisted, with current rates down by 18%. Therefore, if your insurance bill hasn’t changed, you could effectively be paying an 18% surplus.

Speaking at the Ideal Home Show, Martin Lewis cautioned: “This is what’s happening this year; car insurance renewal comes in (and you think), ‘Ah, same price as last year, that’s good’. No, it’s not good, don’t be complacent.

“The market is down 18%, you should not be thinking your renewal is the same price as last year. You should be thinking; ‘I’m being overcharged by 18% compared to what’s happening on the market’.”

He also issued a warning about car insurance renewals during a period of falling prices, stressing the importance of seeing an actual drop in the quoted price. He even warned those who are receiving lower quotes from their insurer.

He stressed the importance of not being complacent, saying: “If your renewal is coming in at the same price or only a few quid lower, then don’t sit there and automatically renew.”

He urged everyone to take active steps in seeking out the best car insurance rates by using comparison websites.

Martin specifically advised to use “all the comparison sites” and to delve into their extra tips and tricks. Additionaly, his MSE site has a Comparison+ tool which can make this intensive research easier.

The savvy financial expert also highlighted that you can use results from the Comparison+ tool “to haggle with your existing insurer”.

If you’re content with your current insurer but find their renewal quote unsatisfactory, presenting evidence of cheaper deals may prompt them to match the rate.

Consistently opposing auto-renewal without market exploration, Martin bade individuals to rigorously evaluate the terms and conditions of both their present cover and any new offers they consider before making a switch.

Martin Lewis delivered these insights while speaking at the Ideal Home Show at Olympia London, scheduled from Friday, March 21, to Sunday, April 6. Details can be discovered at www.idealhomeshow.co.uk