What car insurance changes came into effect in 2022?

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The car insurance industry has experienced a dramatic shift in 2022. You may have heard rumours about the new changes, but it can be difficult to work out what exactly this means for you. Below, we explore and explain the car insurance changes that came into effect in 2022.

FCA ruling

One of the main changes to car insurance has emerged through a new FCA (Financial Conduct Authority) ruling. This ruling has been brought in to remove the “loyalty penalty” that was harming consumers who stayed with one insurance company for a long period. Previously, insurance providers were capable of raising prices for current customers, but new FCA rules prevent providers from artificially hiking prices for existing customers. The likely effect of this is that current customers will be protected from price rises. However, new customers won’t have access to the same low introductory prices they were previously accustomed to.

Costs have gone up: why?

Another change over the last 12 months is that costs have gone up. Indeed, during this period, the cost of car insurance has risen by six percent. This is partly due to the pandemic. During this time, people drove less so the roads were safer. Insurance providers lowered their prices to reflect the falling risk. However, as we exit the pandemic, traffic has increased on the roads once more and providers have altered their strategy accordingly. As a result, you can now expect to pay more on your insurance.

Futureproof your policy

When you purchase car insurance, there are ways of futureproofing your policy to give yourself the best chance of saving money over the lifetime of your car insurance deal. It can be tempting to snap up the cheapest initial deal, but there are a range of factors to consider when picking the best policy for you.

For a start, you should consider what you use your car for and the likelihood of your car being damaged. From there, you should look for the conditions that suit your needs. To get the best price, you should get a quote from your current provider before shopping around to explore other deals. And don’t be afraid to haggle to get the best possible offer!


Auto-renewal is one part of car insurance that’s here to stay though. Providers will hope to roll your insurance on for another year without any changes. You should always cancel your auto-renewal to search for the best deal possible. The car insurance landscape is changing in 2022. But by following the guide above, you should be all set to react and get yourself the deal that suits your needs.