With the new ‘10' car registration plates out next week, it’s prime season for motorists to renew their
car insurance.
However, by sticking with their existing insurer and not shopping around drivers are set to waste £180 each - or £1.3 billion collectively - according to
moneysupermarket.com.
Research from the comparison site revealed that more than one in five drivers (22 per cent) automatically renew their car insurance with their existing provider, rather than shopping around to find a better deal.
Of these, 14 per cent don't think they can find a better deal, and eight per cent, or 2.7 million motorists, say they will automatically renew their insurance because they can't be bothered to see if they can save money.
Drivers in London (30 per cent) and the North East (28 per cent) are the worst culprits for not shopping around when renewing their insurance policy. Says moneysupermarket.com.
The research also reveals drivers stay faithful to their provider for an average 2.8 years, with motorists aged 55 and over the most loyal of the age groups; they stick with their provider for an average 3.5 years.
Likewise, motorists in the North East take the top spot for the most loyal region, continuing their policy with the same insurer for an average 3.4 years.
"With car insurance renewals season in full swing, it is shocking to see the sheer scale of drivers who won't spend a few minutes to see if they can save money when renewing their insurance,” said Steve Sweeney, head of car insurance at moneysupermarket.com.
“Our research has found drivers could save themselves £180 a year on average by scouring the market and with the recent news that comprehensive car insurance increased by nearly 19 per cent during 2009, it is more important than ever to make sure you shop around for a great deal on your car insurance at the best possible price.
"When newly insuring a car, providers may lure drivers in with a competitive deal or special discount in the first year which is not ordinarily available to existing policy holders.
“Rest assured if you can't be bothered to shop around in the second year, the providers will be rubbing their hands with glee as a renewal price will often include a hefty premium - hardly the thanks you deserve for being a loyal customer."
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