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Motorists waste £2bn a year by auto renewing car insurance

Your Money
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Your Money
Posted:
Updated:
26/02/2014

British motorists are wasting £2bn a year by automatically renewing their car insurance policy.

Research by Gocompare.com found that 8.8 million motorists fail to shop around and as a result miss out on an average annual saving of £238.

Some 31% of drivers have stayed with the same insurer for three years or more.

Nearly half of the 8.8 million drivers who allowed their cover to automatically renew did so because they thought their insurer was cheapest last time so would be good value again.

Other reasons why drivers auto renew their policies include: loyalty to an insurer which has ‘always looked after them’ (26%); too much hassle, even if they can save money (18%); and worries they will lose their no claims discount (6%).

Lee Griffin, chief operating officer at Gocompare.com, said: “Millions of drivers are potentially overpaying for their car insurance to the tune of £2bn a year in the mistaken belief that an insurer offering the cheapest premium one year is bound to offer the same good value the next. However, what many drivers have found is that insurers often offer the sweetest deals to new customers whilst pushing up premiums for their existing customers. Switched on motorists know that when it comes to car insurance, loyalty seldom pays.”


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