Delaying car insurance renewals can cost you money
New analysis by moneysupermarket.com has found that British motorists who delayed renewing their car insurance until the last minute in 2010 cost themselves 44 pence for every day they failed to renew as prices rocketed by a massive 31 per cent last year.
The comparison site reviewed over 21 million car insurance quotations between January 2010 and January 2011 and found that every day consumers wait to take out cover costs them even more in premium prices. For example, if a consumer waited 30 days from when they received their renewal notification to purchase their car cover they would see an average increase in their premium of £13.20. If every driver did the same it would cost UK motorists nearly £317m.
The staggering 31 per cent average increase in car insurance premium prices year on year doesn't seem to be waning. With factors such as increases in personal injury claims, fraud and the continued problem of uninsured drivers pushing up premium prices, cash-strapped motorists are struggling to find the money they need. This is in addition to escalating fuel costs which are stopping some drivers getting behind the wheel at all. A premium costing £500 in January 2010 would now be around £655, a £155 increase.
Peter Harrison, car insurance expert at moneysupermarket.com said: "Drivers really need to act as quickly as possible when they know their car insurance is about to expire. Our research shows that every day they delay shopping around and looking for the best deal adds extra cost to their premium price. With so many factors making the cost of motoring much less affordable for a large number of people, every penny counts and being quick off the mark can really make all the difference.
"We still haven't seen a slowdown in the rising costs of premiums and unfortunately we don't know when prices will stabilise. The 31 per cent increase we have identified will impact many consumers when they are already finding it hard to pay their way. The best advice is to shop around and compare policies to ensure that you get good value for money and the policy you need at the best possible price. It really does pay to be proactive and not wait for your renewal notification. Renewing with your existing provider may not be the best option. Shopping around for the best deal on car insurance can save on average £280 through moneysupermarket.com."