Loyal customers risk picking up the bill for increasing premiums

Lee Griffin, chief operating officer at Gocompare.com, comments on the AA's latest premium index: "The AA's latest insurance premium index once again shows that with average premiums still on the increase comparison sites give consumers the best chance of saving money on their car and home insurance.

"The average AA ‘Shoparound' premium for comprehensive car insurance found on comparison sites (£677.49) is a massive 24% lower than the AA's standard average ‘Shoparound' premium (£892.08) proving that comparison sites not only save consumers lots of time when comparing car insurance but can also save them lots of money.

"It's a very similar story for home insurance too. The average AA ‘Shoparound' premium for combined buildings and contents cover found on comparison sites (£164.53) is 17% lower than the AA's standard ‘Shoparound' premium (£199.51).

"There can be vast differences between the premiums offered by different insurers even if the level of cover is exactly the same. If consumers don't compare their renewal premiums against a wide range of competing insurers they will never know if they are paying more than they need to for the cover they want. Just 31% of consumers switched their car insurance provider in 2010 and 26% switched their home insurer. Unfortunately, consumers who mistakenly believe that loyalty to an insurer is rewarded with cheaper premiums will continue to subsidise the lower premiums paid by savvy shoppers who use comparison sites each and every year."