One major car insurance comparison website recently warned drivers against automatically renewing their motor car insurance policy at the end of their term, as insurers have grown to be notorious for not offering enough competitive incentives to retain customers from year to year.
A spokesperson for the online provider of discount car insurance quotes, Scott Kelly, warned motorists from allowing their policies to roll over for another 12 months without taking the time to ensure that their new quote is competitive with those from other car insurance companies. Mr Kelly added that choosing not to shop around for the best deal is important because doing so is in the best interests of the customer, as insurers count on driver apathy to not bother looking into switching providers every year,
People need to be proactive in regards to managing the costs of motoring, industry experts say. This is especially important in the current economic climate, as petrol prices continue to rise and claims against insurers have driven up premium prices by hundreds of pounds. Insurance fraud spiked over the run-up to Christmas, experts add, which means that premiums will continue to rise as insurers continue to pay out on spurious or fabricated claims and will have no choice but to pass on the costs to their customers.
However, steps are being taken to limit the volume and size of claims payouts being made by insurers, as Government committees examine the reasons behind rising insurance premium costs and begin to make recommendations on how to bring the cost of cover back down to more affordable levels. Many have suggested that putting an end to referral fees would go far to accomplish this, as it would ban insurers from selling on details of customers involved in accidents to third parties such as claims management companies.