Drivers and homeowners are being given a 'perverse' warning - insurance prices are coming down. But, as Martin Lewis explains, cheaper doesn’t mean cheap, and millions are still paying far more than they need to.
According to the Money Saving Expert most car and home insurance costs are now more than 10% lower than this time last year, and even cheaper compared with the year before.
But, it's worth noting that prices had rocketed before that, meaning many are still stuck with eye-watering renewal quotes that can easily be beaten by smart shopping — and a little know-how.
Tonight 7:15pm ITV @itvMLshow - millions are being ripped off on car and home insurance prices. What you pay should've dropped, but for many it hasn't. I'm going to take you through the tips, tricks & strategies to ensure max value, min cost.
— Martin Lewis (@MartinSLewis) January 27, 2026
"I've a perverse warning for you," Martin told readers in his useful Money Saving Expert newsletter. "We're so conditioned to price hikes, that if your renewal stays the same you'll probably go 'yay'. Yet that's a mistake. The market has dropped, you should be paying less. So, always compare to check if you can save."
The golden rule: never auto-renew
Insurers rely on customers doing nothing, he explains.
If you're too busy to check the price and your policy auto-renews, you’re likely to be hit with a 'lazy loyalty' penalty. Shopping around before your renewal date can knock hundreds off the price in just minutes.
Should you combine car and home insurance?
It sounds tempting, and in many cases it works well. Bundling policies up with the same insurer can unlock extra discounts - and simplify your paperwork. But it’s not always the cheapest option.
“Combined deals can be good, but only if you check the numbers,” says the newsletter. “Sometimes separate policies from different insurers work out cheaper overall.”
Always check with a comparison tool
That’s where comparison tools come in. Even tiny tweaks can make a big difference. Adjusting excess levels, mileage, job titles or payment methods can slash prices. And with premiums finally falling, now is the perfect time to squeeze insurers for every penny.
Insurance costs may be easing, but only savvy shoppers will feel the full benefit. Check, compare — and never assume your renewal quote is the best deal.
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What are the different types of insurance policy bundle?
- Multicar (one policy for all). "Probably the best known is Admiral, but LV, Aviva, Diamond and Elephant also offer these policies," says the newsletter. "Don't worry if your renewals are at different dates, their systems work with that."
- Discounts on separate policies. "Axa, Direct Line, Churchill and Privilege all offer discounts for multiple cars - so it's worth checking, especially if they're cheapest for one car," says the post. "This can also work combined with home insurance."
Ensure the policy's right for you, and that the insurer's regulated by the Financial Conduct Authority before you buy.
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