It’s the yearly chore that nobody looks forward to, renewing your car insurance.
Whilst the task of combing through the offers online and comparing provider’s premiums can be laborious, it’s also the key to ensuring you’re not paying substantially more for no reason! Unfortunately, that’s what many of us in the UK are doing.
New research from MoneySuperMarket has revealed that UK motorists are still collectively wasting £652.5 million annually by allowing their motor insurance provider to automatically renew their policy.
That’s a lot of money, with the average driver missing out on a potential saving of £278 each! With inflation rising and with wages being squeezed across the country, that’s a tidy sum of money that you don’t want to be missing out on.
Bearing this all in mind, why do so many motorists decide to stick with a deal which could be costing them more than it should?
Top reasons why motorists auto-renewed rather than change providers:
- A fifth (18.76%) were happy with the cost of their insurance
- A further fifth (18.39%) said it was too much hassle to shop around
- 25% liked the customer service with their current provider
- 44% said they liked their insurer’s brand
- 49% said they were loyal to their existing insurer
Motorists have had it tough over the past few years. Fuel prices have risen, last year premiums rose substantially by £50 for the average motorist and the recent cold snap has left the roads riddled with potholes. So when an opportunity arises for drivers to save a bit of money, they should grab it with both hands!
Kevin Pratt, consumer affairs expert at MoneySuperMarket, said: “The FCA took a step in the right direction last year by insisting on greater transparency on insurance renewals, but we clearly need to keep banging the drum when it comes to insurance, as loyalty doesn’t pay.
“As a nation, we spend billions more than we need to because so many motor insurance providers renew their customers’ policies automatically and take the opportunity to bump up the premiums – that’s money we can’t afford to waste given the current economic climate. There are savings of up to £278 to be made by shopping around and switching providers, and it’s a simple task that can be completed in minutes.”
