Every year in the UK we’re spending a whopping £1.3 billion more than we need to on car insurance simply because so many insurers are setting up policies that renew automatically.
Our research has shown an estimated 23% of drivers – that’s over six million motorists – auto-renewed last time around and paid up to £113 more than they had to on the cost of their cover.
So it’s easy to see why you should shop around at renewal time instead of just accepting shouldn’t your current insurer’s offer – this is an instance where loyalty very rarely pays.
If you allow your insurer to auto-renew your policy but don’t check to see whether key features of your cover have been altered, or don’t tell your insurer of changes to your circumstances, such as moving house or getting points on their licence, you could find your cover is no longer valid.
Auto-renewing does have its benefits, most notably that you’re never left without insurance in place and, when you own a car, having it insured is legal requirement.
But that alone is no justification for the practice of auto-insurance to continue in its current format.
So below are our eight ‘best practice’ recommendations to get a fairer deal for motorists and help millions save on their car insurance: