New research findings have indicated that those who permit their motor car insurance to auto-renew may be in for a nasty shock if they’re expecting to continue to get a good deal on discount car insurance.
The average car insurance rate has increased by more than 90 per cent in the past three years. Despite this fact 27 per cent of motorists have allowed their policies to auto-renew, labouring under the mistaken belief that their car insurance companies are rewarding them for their loyalty by providing them with a competitive quote, research conducted by website Gocompare.com found.
Website business development director John Miles stated that the average rate has increased from £682 to an eye-watering £1,332 over the past three years. This equates to a 94 per cent increase, Mr Miles added.
Unfortunately for motorists this upward trend shows no signs of stopping, the business development director stated. This is due to insurers coming to grips with not just the rising costs of claims but with the recent ruling by the European Court of Justice prohibiting them from using gender to calculate premiums from the beginning of 2013.
The research findings indicated that 39 per cent of motorists have been with their current car insurance company for more than three years. Moreover it was found that 5 per cent have been renewing their policies with the same insurer for a decade.
45 per cent of respondents stated that they checked their renewal against their insurance rate from last year. However only 24 per cent admitted to reading their renewal documents carefully enough to check both the premium price and any amendments made to the policy.
Many motorists believed that their insurers would reward their loyalty with a cheaper rate. In addition 16 per cent of Brits stated that they decided to stick with the same insurance company due to the hassle of switching. 13 per cent refused to jump ship because they lacked the confidence to do so, and 6 per cent were concerned about losing their no-claims bonus if they did take the plunge.