Brits need to compare car insurance or risk losing big, as new research recently revealed that motorists neglecting to shop around for the best car insurance costs a collective £73 million on an annual basis.
Sainsbury’s Finance recently discovered that Brits are paying out tens of millions of pounds over and above what they need to, especially in light of the reduced levels of cover they are getting from their ‘cheap’ car insurance. Many of these drivers have insurance policies that will not provide cover for a myriad of accident-related expenses and other incidents such as lost keys, the supermarket group’s banking arm said.
Sainsbury’s new findings coincide with what many car insurance comparison sites say in reminding drivers to ensure that their policies cover such things as instances of item theft from vehicles. Such thefts are quite common during the festive season, industry experts say, as many Brits will leave gifts for their friends and family members in their vehicles.
The Sainsbury’s research findings discovered that all too many drivers will simply select the least expensive option when it comes to shopping around for insurance instead of delving into detail and comparing relative levels of cover between similarly priced premiums from competing companies. This has led to seven per cent of respondents having to pay out of pocket for a replacement vehicle in the wake of an accident after discovering that their insurer does not offer the service as part of their standard cover.
One industry expert said that people need to shop around and pay attention to the details when looking for a new insurance provider. While it may seem like you’re saving, the expert added, in the event of having to make a claim, this could turn out to be a false economy if you only end up paying out of pocket.