Price walking is the practice of increasing rates on current customers more than they increase rates on new customers. This can leave loyal customers in the poor position of not getting the best deals available. Price walking is bad for a few reasons. First, it’s unfair to customers who have been loyal to a company. These customers are essentially being punished for not shopping around. Second, price walking can lead to higher premiums for everyone. When companies increase rates on current customers more than they increase rates on new customers, it drives up the cost of insurance for everyone. This is because the new customers are paying the increased rates, but the old customers are still paying the old rates. This drives up the average rate and makes it harder for people to afford insurance. Insurance companies have been known to use price walking as a way to increase profits. By hiking rates for those who have been with them for a while, they can make more money without actually attracting new customers. The loyalty penalty, as it's also known, is going to be disappearing in the UK this year. The FCA has put in place new rules which state that insurance companies can no longer increase premiums for those who have been with them for a while more than they increase them for new customers.