Drivers wasting hundreds of millions by failing to shop around

Published:

01 September 2009

Topic:

News,Insurance,Car

More than six million motorists don't bother comparing policies when they renew, meaning they are collectively losing an incredible £940million.

September is one of the busiest months for buying car insurance, as people rush to buy cars with the newest number plate or renew their cover as their year's policy comes to an end.

Yet not everyone is taking advantage of the savings they could make, with many wasting an average of £157 each by sticking with their current provider, moneysupermarket.com research shows.

Incredibly, one in five drivers don't shop around when it's renewal time. In fact, 2.6million motorists say they simply can't be bothered to see if they can save money.

Shocking statistics

Steve Sweeney, moneysupermarket.com's head of motor insurance, said it's shocking that so many drivers are potentially wasting hundreds of pounds each because they don't take just a few minutes to compare policies.

Research by moneysupermarket.com shows drivers can save up to £157 by using its comparison tool to compare providers. Steve commented: "It is alarming that so many motorists are prepared to waste their hard earned cash."

Lazy or loyal?

While some drivers may fail to compare their options because they cannot be bothered, many believe they will not find a better deal elsewhere.

However, few insurers reward loyalty, instead relying on apathy to keep their customers - even if they don't have the best deal.

Our expert continued: "Providers count on your apathy to reap the profits. While they may lure you in with a competitive deal or special discount on year one of your policy, not ordinarily available to existing policy holders, you can be sure your renewal price will include a hefty premium - hardly the thanks you were expecting for your loyalty."

Reassured renewal

"Even if you think your quote can't be beaten, it only takes a few minutes to make sure you really do have the best value policy to suit your needs," added Steve.

"In addition, if you have not made a claim in the past 12 months, you should normally expect to be paying less than you did the previous year."

Cutting costs

Although most people can save themselves money by moving to a more competitive deal, there are many ways to make yourself a safer option for insurers. If you can reduce the risk you present, they can reduce your premiums at renewal time.

Read our articles 'How to beat rising car insurance costs' and 'Beware the traps when you re-insure' for some hints and tips on bringing down premiums and avoiding costly mistakes.

Related Links

• Read our article 'How to beat rising car insurance costs'
• Watch our video 'How to get a motor quote'
• Read our article 'Beware the traps when you re-insure'
• Compare quotes from more than 100 leading car insurance companies