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Car insurance auto-renewals costing UK drivers £674 million a year

Peter Kelly
Feb 10, 2020


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.

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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. 

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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.