28 February 2012

Brits lose £2.8 billion postponing car insurance renewals

The apathy that British drivers have towards motor insurance renewal is costing them an average of £375 a year.

The apathy that British drivers have towards motor insurance renewal is costing them an average of ****£375 a year.

Car owners are losing out on making potential savings, because they are failing to switch to providers who may offer more cost-effective policies.

A new study, from leading comparison website MoneySupermarket, has revealed that up to 2.6 million motorists are failing to shop around for cheaper polices as their insurance renewal approaches.

Figures show that 20% of UK drivers (7.3 million) automatically renew their car insurance with their current provider rather than scouring the market for better deals. 10% of drivers don't believe that money can be saved by comparing car insurance; while a further 7% stated that they "can't be bothered” to take the time to hunt out discounted policies.

London drivers were the most likely to make automatic renewals, with 29% failing to compare car insurance premiums.

"An expensive attitude to have”

"With household budgets under continuous pressure, and fuel prices at record highs, it is worrying so many drivers are willing to throw money down the drain,” said Pete Harrison, car insurance expert at MoneySupermarket.

Harrison highlighted that it is vital that motorists don't just accept the renewal price from their current insurer, and instead investigate the market to find the best value car insurance deal to suit their needs.

Although drivers are reluctant to invest energy in searching out the best car insurance deals, there are a host of car insurance comparison sites at their disposal. These sites help motorists see the details of policies offered by different insurance providers and can even help them secure the best online deal.

Making the decision to compare car insurance quotes, could save drivers hundreds of pounds and help them put more in the spending pot for car-related costs.