New research has discovered that automatically renewing your motor car insurance every year without looking for cheaper alternatives is a colossal waste of money – to the tune of around £2.8 billion!
According to a research study recently undertaken by a major car insurance comparison website, an amazing 2.6 million drivers in the UK are missing out on savings because of apathy. Car insurance companies gamble and win on this apathy, raising loyal customers’ rates year on year even as they advertise massively discounted rates for new customers, the online car insurance comparison site said.
Industry experts expressed their astonishment that motorists are still not making the decision to shop around, younger drivers especially so. Annual insurance costs for a young male driver between the ages of 17 and 22 was listed as approximately £3,100, according to the comparison site, with the current price nearly double what it was just two years ago.
However, high-risk classes of motorists such as young men are not the only ones to have to give up an arm and a leg for insurance cover. One example of this is the 45 per cent increase to premium prices for women aged between 40 and 49 years of age over the same period of time, resulting in an average price of £618 a year for these motorists.
Younger female drivers are likely to lose big this December as well, thanks to a recent ruling from the European Court of Justice that bars insurers from using gender differences as grounds for risk assessment. This could lead to increases of more than £300 a year for young female motorists, which makes shopping around for the best deals that much more important.