Research from comparison site gocompare.com has revealed that 9 million motorists a year are costing themselves money by staying loyal to their car insurance providers.
With car insurance policies automatically renewing every year, 27% of UK motorists allow their policy to carry on running, trusting that their current companies renewal price will be the best they can get, despite the emergence and ease of comparison sites.
Just 5 minutes of filling in a form can give you the best prices from 100s of insurers, and many people will find they can save money by switching provider.
Business Development manager from gocompare, John Miles said, “The average car insurance premium has risen by almost £650 to £1,332 in the last three years. This is a whopping 94 per cent increase and this trend is likely to continue for the foreseeable future as insurers get to grips with rising claims costs and the recent European Court of Justice ruling prohibiting insurers from calculating premiums based on gender from the end of 2012.
“Insurers rely on apathy to retain customers. Very few renewal notices show what you paid for your insurance last year, because your new premium may have increased significantly. Also, insurers make use of the annual renewal to review the cover they offer, typically increasing excesses or altering policy wordings. So it’s essential that you check not only the price, but the level of cover to ensure your policy continues to give you the protection you need.”
39% of drivers have been with their provider for more than three years now, and 26% of those surveyed believed that their rate this year would be the cheapest because it was the cheapest provider last year.
John added, “Just because your current insurer offered the best deal last year, you shouldn’t automatically assume that they will when your policy comes up for renewal. Our advice is simple, look at your renewal notice as soon as it arrives and compare the price and cover against last year’s documents. Consider any changes you might need to make to the cover and take a look at similar policies on a comparison site to see if you can make any savings. It can take as little as five minutes to compare up to 120 car policies on Gocompare.com and you could save as much as £325.35 that five minutes could be time well spent.
“Finally, if you decide to switch, don’t forget to notify your current provider. Most policies automatically renew, unless you tell the insurer otherwise within the 14 day cooling off period. Miss the cut off date and you could face hefty cancellation charges.”