Auto-renewing insurance policies costs £2.4b a year

Automatically renewing motor car insurance policies without shopping around can cost as much as £2.4 billion every year, says one leading car insurance comparison website.

According to discount car insurance quote provider moneysupermarket.com, in excess of seven million motorists choose to stay with their current insurer when it comes time to renew their insurance cover. Each motorist loses approximately £333 on average by neglecting to switch, which could result in families encountering household budgeting problems, especially in light of further evidence that motorists who do switch are saving 42 per cent more than they would have last year.

Around one out of every five motorists remain with their current insurer every year instead of shopping around for less expensive cover, the research study found.  Nine per cent of those who refuse to switch claim that they were not confident in their ability to find a better deal, and seven per cent admitted to not being bothered to try and shop around.

Comparison site car insurance expert, Pete Harrison, commented on the findings, stating that the cost of keeping a car has been steadily increasing.  Insurance premiums are more expensive than they were 12 months ago, he added, and the price of fuel has been well on its way to record highs as well.

Despite these issues, Mr Harrison said motorists can help keep these costs down by motivating themselves to comparing premium prices to see where they can make some savings.  The insurance comparison site also found recently that Brits are effectively losing money by neglecting to switch their utility providers, as doing so could result in a savings of up to £411 annually in electricity and gas bills.

With both energy bills and car insurance increasing, families could find that switching their insurers and suppliers could effectively aid them in managing their outgoings.

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