More than one in 10 (15%) drivers allow their motor insurance policy to automatically roll-over for another year without checking whether the price they were offered was competitive.
A further four in 10 (43%) renew their insurance with the same provider but only after checking other quotes.
The findings from comparison website GoCompare, reveal that of the 58% who stick with their existing provider, just over a third (35%) auto-renewed because the price wasn’t hugely different to the previous year, two in 10 (21%) said they like to stay loyal, 9% had a good experience with a claim, and 7% said they didn’t feel confident switching as car insurance is confusing.
However, GoCompare claims motorists could save an average £269 by shopping around to find the best car insurance deal.
Since April 2017, under new Financial Conduct Authority rules, insurers must include last year’s premium in renewal letters. But GoCompare says that while insurers are now forced to tell customers exactly how much they are putting their premiums up by, they are still ‘reassuring’ them that they don’t need to do anything for their insurance to continue.
Georgie Frost, spokesperson for GoCompare, comments: “While auto-renewal guarantees that drivers maintain cover at all times and don’t inadvertently end up driving uninsured, insurers aren’t effectively communicating all the options open to people at renewal.
“We’d like to see insurers make sure that important information is prominently displayed, so that policyholders are actively and effectively encouraged to shop around every year. At the moment, insurers can – and do – still give more prominence to messages that encourage people to do nothing, despite their premiums going up.”
But some savvy drivers are taking matters in to their own hands – nearly four in 10 (39%) switched provider at their last renewal to get a better deal.