Car insurance renewals waste £1.3billion a year in loyalty


Car insurance renewals waste £1.3billion a year in loyalty Fair Investment
Car insurance renewals waste £1.3billion a year in loyalty Fair Investment

Car insurance renewals waste £1.3billion a year in loyalty

28 February 2010 / by Rachael Stiles

Drivers could save up to £1.3billion by shopping around for a better car insurance deal at renewal instead of opting to stick with their existing insurer, according to research from moneysupermarket.com.

As the new ’10’ car registration plates prepare for release next week, now is a popular time for drivers to renew their car insurance, so moneysupermarket.com is urging them to compare car insurance quotes to get the best deal.

The study shows that car insurance customers are wasting up to £180 each a year, and, on average, are staying loyal to their provider for 2.8 years before switching to another insurer, with the over 55s most commonly staying with the same one for the longest – an average 3.5 years.

As many as 7.3 million drivers automatically opt for their current car insurance provider’s renewal quote each year, the comparison website has found, which equates to 22 per cent of UK drivers.

Of these, 14 per cent stay with their existing car insurance provider because they do not think they can find a better deal, while eight per cent admit they stick with their current insurer because they simply cannot be bothered to shop around and see if there is money to be saved.

Commenting on the results of the survey, Steve Sweeney, head of car insurance at moneysupermarket.com, said it is “shocking” to find that so many drivers refuse to spend a few minutes comparing car insurance quotes to see if they can get a cheaper premium.

He said that “it is more important than ever to make sure you shop around for a great deal on your car insurance at the best possible price.”

Car insurance providers lure new customers in with a competitive introductory deal, such as online discount for the first year, but existing customers are often excluded from these discounts, meaning it is time to move on to a better deal.

“Rest assured if you can’t be bothered to shop around in the second year, the providers will be rubbing their hands with glee as a renewal price will often include a hefty premium,” Mr Sweeney said, “hardly the thanks deserved for being a loyal customer.”

© Fair Investment Company Ltd

Car insurance renewals waste £1.3billion a year in loyalty Fair Investment

 



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Written by Editorial Team