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Car insurance loyalists wasting £9.4billion a year

01 September 2009 / by Andy Davies

Motorists who remain loyal to their car insurance provider could be wasting up to £9.4billion a year by not shopping around for a better deal.

Research by moneysupermarket.com has found that more than six million drivers in the UK automatically opt to renew with their existing insurer and are consequently missing out on an individual saving of around £141 a year.

The price comparison site found that of the 20 per cent of drivers who automatically renew their car insurance policies, 12 per cent said they did not shop around for a better deal because they did not think they would find one, while a further eight per cent said they could not be bothered to shop around.

Steve Sweeney, head of motor insurance at moneysupermarket.com, is concerned by these findings; he said: "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.

"Our research has found drivers could save themselves £141 on average by scouring the market - money which could come in useful elsewhere. It is alarming that so many motorists are prepared to waste their hard earned cash."

On average, drivers stick with the same provider for nearly three years, with motorists over 70 being the most loyal, remaining with the same provider for almost four years.

Steve Sweeney also warned drivers that renewal prices can include large premiums: "Providers count on your apathy to reap the profits. While they may lure you in with a competitive deal or special discount on year one of your policy, not ordinarily available to existing policy holders, you can be sure your renewal price will include a hefty premium - hardly the thanks you were expecting for your loyalty."

Urging drivers to shop around for the best deals, he added: "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 value policy to suit your needs.

"In addition, if you have not made a claim in the past twelve months, you should normally expect to be paying less than you did the previous year."

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