One in five auto renew car insurance without comparing deals
A quarter of drivers said they allowed their insurance to auto renew out of loyalty to their current insurer, while a similar number said that as their provider was the cheapest last year, it would also be the lowest in price this year.
For one in six drivers, an auto renewal gave them peace of mind that they remained insured.
According to the research from Go.Compare, younger drivers aged 18-54 were more likely to let their insurance renew (22%) without doing any research compared to older motorists (14%).
Meanwhile, 15% said they didn’t want the hassle of changing monthly direct debits while one in 10 were worried they may lose their no claims bonus if they switched insurer.
When it comes to receiving the renewal letter, 46% of the 1,440 polled said they checked last year’s premium to see how it had changed, while 35% reviewed the renewal documents for any changes to the cover period.
In June last year, the city watchdog, the Financial Conduct Authority (FCA) implemented the General Insurance Pricing Practices, meaning that insurers can’t offer better deals to new customers. Further, renewal prices should be the same as a driver with the same risk profile, but that only applies with the same insurance company, Go.Compare said.
“Therefore, it’s even more important that drivers shop around with other insurers to check they are getting a good deal on cost and cover”, Ryan Fulthorpe, car insurance expert at Go.Compare said.
He added: ““I am always shocked when I read our survey results that people still aren’t taking advantage of comparison websites and the possible financial savings they could gain, as well as the potential for better insurance cover, from just a few minutes online.”