Brits have been missing out on up to £1.5 billion in savings annually by not looking for discount car insurance, new research says.
Many motor car insurance customers are reticent to go in search of cheaper car insurance. As a result yearly increases to car insurance premiums of as much as £1.5 billion are simply absorbed into the marketplace.
Customers are constantly being told from several sources to compare car insurance quotes in order to get the best deal. Despite this, the average customer routinely accepts an increase of approximately 8.13 per cent to their rates before being motivated to look for a deal that may offer more competitive rates.
Research figures also indicate that at 45 per cent, nearly one out of every two car insurance customers neglect to ever pursue a new or better deal elsewhere.
The remaining 55 per cent take the process quite seriously, however. The average amount of time spent by someone who does recognise the importance of shopping for new rates is nearly five and one half hours.
On average, motor car insurance rates go up by approximately 7.4 per cent before spurring a customer to action. The figure for other insurance cover rate hikes differ. For example once contents insurance prices go up by 8.6 per cent is when consumers will seek better deals. Likewise for buildings cover, which saw nearly identical rates at 8.4 per cent.
Comprehensive cover can run £800 annually on average for a UK customer. Car insurance renewals alone can be reduced by £1.4 billion every year if UK policyholders would only shop around before hitting the 7.4 per cent threshold.
Both the home contents and buildings insurance markets contain the potential for serious savings as well. Savings of more than £103 million on an annual basis could be made if policyholders would switch at the 8 per cent target mark or less.