£1.5bn in Car Insurance Premiums Wasted Due To Auto-Renewals

 

 It has recently been revealed that UK drivers as a collective are wasting approximately &1.5bn annually by leaving their car insurance policy to renew automatically.

Recent research from comparison site Gocompare.com surveyed 2,000 UK drivers in early February to find out just how much effort they put into finding the best deal for them and what factors help form their decision.

The findings of this research showed that just over 5 million people in the UK opt to auto-renew on their current policy instead of searching for or talking to a professional regarding the best deal available for them.

Surprisingly the demographic with the most to gain from taking a more detailed looked at their policy - 18 to 24 year olds - topped the list as the group that was most likely to auto-renew each year.

When the respondents were questioned about their decision to not search for a better deal, the most common response was out of loyalty to the insurer (41%) closely followed by drivers stating that they have been with the current provider 3 or more years (32%).

It was also found that 33% of respondents, while they do read the renewal information, believe it should be easier to understand so that they can make a more informed decision. 34% of survey participants stated that they were unsure whether competing insurance providers are telling the truth when saying they can offer them a better deal.

Relationship Manager at Gocompare.com, Matt Oliver spoke on the results of the survey, he said “With car premiums hitting record highs, it’s now more important than ever to make sure you’re not getting a raw deal.

“At renewal, insurers will offer to continue your cover without you having to lift a finger. What they’re not so good at telling you is that by shopping around you may be able to find the same cover for less.

“Loyalty, when it comes to car insurance, generally doesn’t pay”

While all of the details of a policy can seem overwhelming and finding a suitable policy for your specific needs can seem tedious, it’s a much easier process when dealing with a broker.

Get in touch with us today so that our expert team can you find the right policy for the right price.

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