Millions of drivers could save more than £200 on their car insurance policy by haggling with insurers.
New research reveals that more than three in five car insurance customers who challenged their renewal quotes secured price reductions.
The findings from Which? have sparked concerns about whether insurers are providing fair value to customers from the outset.
While the typical annual saving amounted to £64, the most successful negotiators fared considerably better. Five per cent of those who haggled managed to slash more than £200 from their original quotes.
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When renewing their car insurance policy, drivers could save money by haggling with their insurer
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These substantial discounts have prompted Which? to question whether initial renewal offers genuinely represent fair pricing, particularly given that many customers accept quotes without attempting to negotiate.
Nearly half of drivers reported premium increases at their last renewal, while 27 per cent saw reductions and 23 per cent experienced no change.
Of those surveyed, 59 per cent attempted to negotiate with their insurer, predominantly via telephone.
The success rate amongst hagglers was notable, with three-fifths securing lower prices than initially quoted.
The average amount of money saved by haggling was £64
GETTYSam Richardson, deputy editor of Which? Money, said: "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."
The survey revealed that vulnerable customers face particular challenges when negotiating insurance renewals.
Those experiencing difficult life events, health conditions, financial struggles or lacking confidence were more likely to engage with their insurer about pricing.
While these customers achieved price reductions at similar rates to others, they encountered additional hurdles.
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They were more likely to need policy modifications to secure lower prices and found the haggling process more difficult to navigate.
Which? highlighted that under the Consumer Duty regulations, financial firms must ensure vulnerable customers achieve outcomes comparable to other consumers.
The disparity in experiences raises concerns about whether insurers are meeting these obligations, particularly when vulnerable customers must work harder to obtain fair pricing despite facing greater personal challenges.
The Association of British Insurers defended the practice, stating that price variations between initial online quotes and telephone offers often result from examining individual factors more closely.
Car insurance prices can be reduced if drivers renew their policy earlyGETTYAn ABI spokesperson said: "Our members take their commitment to their customers and their regulatory requirements seriously.
"Variations between an initial online quote and a bespoke telephone offer often come down to a deeper dive into individual factors which may have changed from the previous policy such as your vehicle's security measures, driving habits, level of cover and choice of voluntary excess.
"We'd always recommend shopping around to secure cover that truly meets your needs, not just based on price."
Since 2022, regulations have prohibited insurers from charging existing customers more than equivalent new customers for the same policy, ending the so-called "loyalty penalty" that previously affected longstanding policyholders.
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