Loyalty doesn’t pay for UK motorists, who are losing out on hundreds of pounds by automatically renewing their car insurance.
Research undertaken by price comparison site moneysupermarket.com discovered that a quarter of drivers didn’t bother seeking out cheaper car coverage, even though they could save more than £230 a year on average by doing so.
Ten per cent of motorists said they simply couldn’t be bothered shopping around for a better price, while a further 15 per cent were under the misguided impression that they wouldn’t be able to find a cheaper provider. The worst drivers for seeking out a cheaper car insurance deal were found in the north east of England and London, where a third automatically renewed their annual car coverage.
Across the UK, 36 per cent of motorists were willing to hunt out a less expensive policy, with the savviest savers based in Yorkshire and the Humber (46 per cent), Wales (44 per cent) and the West Midlands (41 per cent).
The research also found that younger motorists – aged 18-34 – were more willing to change car insurance providers, switching suppliers on average every 1.8 years. Drivers over 55 were more likely to stick with their current provider, staying loyal to them for an average of 3.5 years, although this loyalty doesn’t seem to translate to cheaper prices.
Steve Sweeney, head of car insurance at moneysupermarket.com, said:
“Our research shows people can save £233 on average a year by scouring the market – that’s nearly £100 more compared with last year. Providers count on apathy to reap the profits and do not reward loyalty with a cheaper premium. 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.”
He added that along with shopping around online to find a better car insurance deal and cheap car finance, drivers had a number of other easy ways to reduce their policy premium.
Altering the amount of voluntary excess paid and fitting an alarm and immobiliser system can help to cut costs, as can parking in a garage or well-lit driveway instead of on the road. Removing any unnecessary optional extras, such as breakdown coverage or courtesy car provision, also pushes down prices, while new drivers can often get large discounts by getting a Pass Plus certificate.