Many car insurers taking us for a ride

Many car insurers are unfairly taking advantage of customer loyalty, according to startling research from price comparison site moneysupermarket.com.

Accepting a renewal quote received in the post is a simple process but it is proving to be a very costly one for Brits.

Richard Mason, director of insurance at moneysupermarket.com, said: "This is a disappointing trend from many insurers. A renewal quote should be even more competitive than the previous year, yet providers seem to be relying on people's apathy to increase their own profits.

"Bear in mind that in each of the typical scenarios we looked at the insurer had provided one of the three cheapest quotes for that driver the year before. Yet 12 months down the track, on average, the renewal quote was more than double that of the cheapest quote."

For example, a 33-year-old female insuring a 2005 Ford Focus was sent a renewal quote of £459 – a staggering £256 more than her cheapest quote. A 36-year-old male was quoted £325 to renew the insurance on his 2002 Renault Megane, which was £174 more than his best premium.

Richard Mason added: "Drivers really need to wake up to this. It requires very little extra effort to make sure you aren't paying well over the odds for your car insurance.

"The renewal trap is an easy one to fall into. It can end up costing you hundreds of pounds extra or, in extreme cases, perhaps in the thousands."

moneysupermarket.com has the following top car insurance tips:

1.Shop around: Don't take your renewal quote unless it is one of the best three prices on the market.

2. Details: Always provide as much accurate information as possible to your insurer, such as past convictions, where you park the car, your annual mileage and whether you use the car for commuting. Premiums are adjusted greatly, depending on these and many other factors.

3. Younger drivers: Take a Pass Plus course, add an older driver to your policy and also consider using a Pay-As-You-Drive policy to reduce costs.

4. Payment method: Monthly payments usually work out more expensive, so consider using a credit card with a 12-month 0 per cent purchase offer to pay for your premium in full.

5. Excess: Consider the size of your excess. Increasing your excess means you are much less likely to claim for small damages and so will lead to a cheaper premium.