Car insurance renewal due? Shop around first!
Motorists are wasting £233 a year on average by automatically renewing their car cover with their existing insurer - an increase of £92 (40 per cent) compared with last year, according to moneysupermarket.com.
With motor renewals season in full swing and new car registrations out on 1 September, research from moneysupermarket.com reveals 8.9 million drivers (25 per cent) automatically renew their car insurance with their provider rather than shopping around to find a better deal. Of these, 15 per cent don't think they can find a better deal, and a further 10 per cent or 3.6 million motorists say they will automatically renew their insurance because they can't be bothered to see if they can save money.
Motorists in London and the North East are the worst culprits, with one in three (33 per cent) not shopping around at renewal time.
Steve Sweeney, head of car insurance at moneysupermarket.com said: "We've seen a massive jump in the savings now available to motorists who shop around for car insurance. Our research shows people can save £233 on average a year by scouring the market - that's nearly £100 more compared with last year.
"We have seen premium prices rocket over the past year, and this is mainly because of increases in fraudulent claims, increased personal injury claims and uninsured drivers, meaning insurers are putting policy prices up to compensate. It is alarming so many motorists are prepared to waste their hard earned cash, especially when this money could come in useful elsewhere.
"In this current climate, it is shocking to see the sheer scale of drivers who won't spend a few minutes to see if they can save money when renewing their car insurance. My advice is simple, don't believe your renewals letter - insurers don't value your loyalty it is rarely the best deal for you. Shopping around to get a better deal."
Loyalty doesn't pay
The research also reveals drivers stay loyal to their provider for an average 2.8 years, with the over 55s remaining the most faithful of the age groups, sticking with their provider for an average 3.5 years. Those aged between 18 and 34 are the least loyal, sticking to the same provider for only 1.8 years. Likewise, motorists in Northern Ireland take the top spot for the most loyal region, continuing their policy with the same company for an average 3.4 years, followed closely by those in the Scotland (3.3 years) and the East of England (3.1 years).
Steve Sweeney continued: "Providers count on your apathy to reap the profits and do not reward your loyalty with a cheaper premium. While they may lure you in with a competitive deal or special discount in year one of your policy, (not ordinarily available to existing policy holders), you can be sure your renewal price will include a hefty increase - hardly the thanks you were expecting for your loyalty.
"Even if you think your quote can't be beaten, it only takes a few minutes to make sure you really do have the best policy to suit your needs."