A renewal quote is the price an insurer offers to continue cover for a further term as the current policy nears its end. It is a fresh proposal that can differ from the expiring premium and must be compared before deciding.
In one line: A renewal quote is the insurer's price to continue cover for another term.
How a renewal quote works
Insurers send a renewal quote before a policy expires, setting out the new premium and any changes to cover. FCA rules require the previous year's premium to be shown alongside it so the change is clear, and renewal terms must be fair.
If last year's motor premium was 650 GBP and the renewal quote is 780 GBP, the documents must display both figures, helping the customer see the 130 GBP rise and decide whether to accept, switch or negotiate.
Many policies renew automatically unless cancelled, so reviewing the quote before the renewal date matters.
Renewal quote vs a new quote
A renewal quote comes from the existing insurer to continue the same policy. A new quote is a fresh price from any insurer, including the current one, for a policy started from scratch, and it can sometimes be cheaper than the renewal.
FCA rules require that renewing customers are not charged more than equivalent new customers for the same cover.
Primary source: FCA: Insurance