Cars & Garages > Stories

Breakdown firms hiding price hikes on car insurance renewal

Eleanor Newis
Jan 24, 2019

AA and RAC customers not told their premiums have changed.

Breakdown cover customers are being sent renewal letters that don’t inform them of exactly how much their premiums will be going up.

In April 2017, the City watchdog brought in new regulations that made insurers print clearly the previous year’s premium on all their policy renewal letters.

The hope was that this would prevent loyal customers being ripped-off by price raises and mean they were encouraged to shop around for the best deals.

However, it has now emerged that the rules only apply to insurance policies that last for periods of longer than ten months.

This means that thousands of AA and RAC customers who pay for breakdown cover on a month-by-month basis aren’t being told their premiums are changing. They also aren’t being told how much they paid previously.

The Financial Conduct Authority (FCA) has said it is investigating this matter.

It is therefore important that customers make a note of what they are paying to ensure they will know if their premium is increased without them being told.

A spokesperson for the RAC said: ‘We fully comply with our regulatory responsibilities. These requires insurers to display the previous premium adjacent to the renewal quote for annual policies of ten months or more.’

The AA’s spokesperson said: ‘The previous year’s premium is not on correspondence for continuous monthly memberships, which are not subject to the FCA’s regulatory requirement for annual policies.’

You should always make sure you know exactly how much you’re paying for your premium, so you’ll know if it goes up, and by how much. It’s also important to use a price comparison site like A Spokesman Said to make sure you find the best insurance deal, as you’re likely to save big money by shopping around.


Here at A Spokesman Said we love fighting for your rights and believe passionately in natural justice.

But these battles cost us money. You could help us fund these fights by using our price comparison site, A Spokesman Said for your energy, car insurance and household bills.

We’re just the same as Go Compare or any other price comparison site, so you won’t be losing out in any way - by helping us, you will be helping yourself.

Thank you for your support.

When did you last switch your car insurance provider?

Last year 65% of customers didn't switch their car insurance to try and get a better deal.