Egg points to £3.6 billion in car insurance savings

13 October 2004
According to Egg, motorists in the UK are wasting an estimated £3.6 billion pounds a year through failing to shop around for car cover.

This equates to £120 pounds, per person, per year.

The news follows the release of new figures from online bank Egg that show that one in five motorists simply accept the renewal quote offered to them by their current insurer.

"Every year, millions of motorists end up paying over the odds for their car insurance because they do not get around to shopping around for competitive cover," said Andy Deller, director of banking and insurance at Egg

"Some insurers prey upon this apathy by hiking their premiums in the knowledge that many drivers will not bother switching to another provider," he added.

Egg's figures show that motorists saw their premiums rise by an average of six per cent a year, while 1.28 million motorists saw their premium rise 15 per cent or more.

However around 5.95 million motorists - representing 20 per cent of those on the roads - accepted their renewal quote without shopping around, with 3.4 million more (11 per cent) only looking at one other quote.

Of those that did not shop around more than one in three (38 per cent) said they did not have the time, did not see the point or found it too confusing looking for new cover.

The remaining two thirds of people (62 per cent) said they were not shopping around as they believed their provider gave them a good deal and were loyal to them.

"As people's lives become busier, many motorists do not see shopping around for their car insurance as a priority," noted Mr Deller.

"Some motor insurers entice people with competitive premiums which often increase dramatically in following years. It is vital that consumer do keep an eye on their insurance quotes to ensure they are getting the best possible deal," he warned
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