It has been over a year since the FCA auto-renewal bill changes came into force, but new research from MoneySuperMarket has revealed that UK motorists are still collectively wasting £652.5 million annually by allowing their motor insurance provider to automatically renew their policy.
It’s an easy mistake to make, after all you spent all that time researching a decent car insurance provider last year, how much better could the deals get 365 days later?
It turns out they could get a lot better.
Premiums rose substantially over the last year, rising by £50 for the average motorist. Its estimated that by shopping around, the average driver could potentially save £278 EACH, a staggering £3.6 billion collectively.
Looking at these figures, it’s hard to argue the effectiveness of research. So why do motorists decide to stick with what they’ve got?
Top reasons why motorists auto-renewed rather than change providers:
- A fifth (18.76%) were happy with the cost of their insurance
- A further fifth (18.39%) said it was too much hassle to shop around
- 15.25% liked the customer service with their current provider
- 10.44% said they liked their insurer’s brand
- 7.49% said they were loyal to their existing insurer
Kevin Pratt, consumer affairs expert at MoneySuperMarket, said: “The FCA took a step in the right direction last year by insisting on greater transparency on insurance renewals, but we clearly need to keep banging the drum when it comes to insurance, as loyalty doesn’t pay.
“As a nation, we spend billions more than we need to because so many motor insurance providers renew their customers’ policies automatically and take the opportunity to bump up the premiums – that’s money we can’t afford to waste given the current economic climate. There are savings of up to £278 to be made by shopping around and switching providers, and it’s a simple task that can be completed in minutes.”