Car insurance auto-renewals costing UK drivers £674 million a year
41% of UK drivers allow their car insurance to auto-renew and are seeing their insurance costs rise by £40 on average, instead of looking around to get a cheaper deal.
Research has found that 41% of the UK's 41,080,771 drivers - 16,843,116 - allow their car insurance to automatically renew and are seeing their bills rise.
MoneySuperMarket in association with OnePoll, conducted a survey of 2000 adults between 21/01/2020- 31/01/2020 and found that staying with your insurer leads to an average price increase of £40 a year.
Of the roughly 16.8 million drivers who do not shop around, 73% saw their premiums increase by an average of £40, while one in five (20%) saw increases between £51 and £125.
Uncovering some of the reasons why drivers stick with their current insurers and allow their car-insurance to auto-renew, it was found: "Nearly one in ten (8%) allow their car insurance to renew automatically without shopping around for a cheaper deal, with a fifth (21%) staying with their existing provider for ease. A further fifth (16%) believe changing car insurance provider is too much time or effort and one in ten (11%) do not believe that there are significant savings to be made."
However unlike the majority of drivers who have seen their bills rise whilst auto-renewing their car insurance: "research reveals that the cost of an average premium decreased by 4.6% year-on-year - from £527 in Q4 2018 to £503 in Q4 2019".
Therefore whilst the cost of an average premium decreased, the average driver who automatically renew their deals have seen an increase.
Speaking on how drivers should be shopping around for a better deal, car insurance expert at MoneySuperMarket, Dave Merrick, commented: “If you let your car insurance auto-renew you’ll more than likely see an increase in your premiums, with our research showing that the average premium can increase by £40.
"Although some of us are shopping around for a better deal, the number of people allowing their policy to auto-renew has doubled in just a year, meaning that even more people are paying a loyalty tax by staying with their insurer."
According to Consumer Intelligence from November 2019, 51% of consumers could save up to £270.32.
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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.