Automatic insurance renewal costs motorists £3 billion

| August 30, 2012
Automatic insurance renewal costs motorists £3 billion

Automatic car insurance renewals are causing British drivers to be collectively out-of-pocket by £3.1 billion a year.

Price comparison site MoneySupermarket.com claims that the
8 million drivers who remain with their existing insurer could save £404 each if they shopped around.

More than one in five UK car owners automatically renew their motor insurance, according to a new study by the site.

Eight per cent of motorists can’t be bothered to search for a better deal and 11 per cent don’t think they would find a better deal than the one offered by their current insurer.

The average motorist has stayed with their current provider for around two and a half years, although the statistics suggest that younger people are more likely to shop around.

The average driver over the age of 55 years has stayed with their current insurer for more than three years, while the average driver between the ages of 18 and 34 has stayed with their insurer for less than two years.

Of course this percentage will be affected by the teenage drivers in this group, who will have been driving for less than three years.

MoneySupermarket.com found that drivers in Wales are most likely to shop around when the time comes to renew their motor insurance.

Pete Harrison, car insurance expert at MoneySupermarket.com, said: “It takes about five minutes to check if there is a cheaper policy out there to suit your individual needs.

“When it comes to renewing your car insurance policy, there is no excuse for apathy.”

Meanwhile, AXA car insurance has warned that 1 September has been the worst day of the summer holiday season for accidents for past three years.

Last year, the number of accident claims was 40 per cent higher on 1 September than the daily average for the summer holiday season, and it was 30 per cent higher in both 2009 and 2010.

With 1 September falling on a Saturday this year, the insurer is warning that the figure could be even higher, as many people will be returning home at the end of the school summer holidays.

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