New car? New insurance!

Sainsbury’s Car Insurance is reminding motorists to review their cover when they buy a new car.

New research for the bank indicates that 23 per cent of car owners — some 7.7 million people - simply stuck with their existing provider the last time they bought a car, without seeking quotes from anywhere else. But according to Sainsbury’s Bank, the difference in premiums between the market average and the 25% most competitive is around £55, potentially meaning that by failing to shop around, these car buyers could be overpaying for their cover to the tune of some £428 million a year.

According to the last Sainsbury’s Bank Car Buying Index, 5.4 million people planned to buy a new car between February and July. The bank estimates that this could mean that over this six month period alone, as many as one million people failed to review their insurance when they bought a car.

Joanne Mallon, Sainsbury’s, Car Insurance manager, said: "While we all know that insurance premiums differ depending on what car we drive, many of us seem to neglect this and do not shop around when we buy a new one. Motorists should be aware that doing nothing and just sticking with the same provider when changing their car could mean they end up paying over the odds."

Regionally, the results suggest that those in Yorkshire and the South East were the most savvy at reviewing their insurance when buying a car; whilst those in the East Midlands were the least likely to bother.