A third of British drivers let car insurance auto-renew and pay too much
Consumers are losing out on savings and facing ‘loyalty penalties’.
British people who own cars might be allowing themselves to get ripped-off by their insurance policies, because they allow their policies to auto-renew instead of finding a better deal.
Data from the Association of British Insurers (ABI), the Financial Conduct Authority (FCA) and Citizens Advice, says that motorists who auto-renewed were 50% more likely to be paying over £800 for their car insurance than if they found a new policy.
This demonstrates that no matter what insurance firm you’re with, it’s usually the case that staying with the same policy for too long loses you money.
In 2018, 29% of UK drivers let their car insurance renew automatically, compared to 30% who negotiated a new policy with their current firm, and 41% who went online to find a better option.
In 2019, 36% of motorists allowed their insurance to auto-renew, 30% of people negotiated with their usual provider, and 34% searched online for the cheapest option.
Fewer drivers therefore are searching for the best deal. Of those who auto-renewed, 48% were ‘aware of the savings that could be made by switching but didn’t want to deal with the hassle’.
However, a large amount of people (37%) were convinced they were getting the best deal by switching. A further 15% were ‘unaware that they could have saved money by switching online.’
Don’t fall into the trap of assuming you’re on the best deal already, or get put off by the bureaucracy of switching. It doesn’t have to be that time-consuming, and it can save you a lot of cash.
Use a price comparison site like A Spokesman Said to find the best deal for you, and take the opportunity to save some money, instead of just renewing automatically.
Here at A Spokesman Said we love fighting for your rights and believe passionately in natural justice.
But these battles cost us money. You could help us fund these fights by using our price comparison site, A Spokesman Said for your energy, car insurance and household bills.
We’re just the same as Go Compare or any other price comparison site, so you won’t be losing out in any way - by helping us, you will be helping yourself.
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When did you last switch your car insurance provider?
Last year 65% of customers didn't switch their car insurance to try and get a better deal.