Motorists Waste GBP1.7BN on Automatic Car Insurance RenewalsBy Moneysupermarket.com, PRNE
Monday, February 21, 2011
6.3 Million Drivers Automatically opt to Renew With Their Existing Insurer
CHESTER, England, February 22, 2011 - With the new '11' car registration plates out next week (1
March), it is prime season for motorists in need of cheap car insurance
(www.moneysupermarket.com/car-insurance/). However, drivers are set to
waste GBP270 each, or GBP1.7 billion collectively, by sticking with their
existing insurer and not shopping around, according to
LOYALTY DOESN'T PAY
Research from Britain's number one comparison site found a
fifth of drivers (19 per cent) automatically renew their car insurance with
their existing provider, rather than shopping around to find a better deal.
Of these, 11 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.(2)
Drivers over 55 are the worst culprits, with a fifth (21 per cent) not
shopping around when renewing their insurance policy.
Peter Harrison, car insurance expert at moneysupermarket.com
said: "With car insurance renewals season in full swing, it's important that
drivers take the time to shop around to take advantage of the savings that
can be made by switching. In just a small amount of time, motorists could
save themselves GBP270 a year
"It is more important than ever at the moment to make sure you
get the best deal on cover, especially when escalating fuel prices and the
rising cost of insurance cover is hitting motorists hard. Our analysis shows
car insurance prices increased by 31 per cent in 2010 - or 44p per day.(3)
The research found drivers stay faithful to their provider for
an average 2.6 years, with motorists aged 55 and over the most loyal of the
age groups; sticking for an average 3.3 years.
Peter Harrison, continued: "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 don't shop around in the second year, as certain insurers
will not hesitate to increase your renewal price - hardly the thanks deserved
for being a loyal customer."
"Insurers count on customer apathy to reap the profits, so it
is alarming so many motorists are prepared to waste their hard-earned cash by
not looking for a better deal. Even if you think your quote can't be beaten,
it only takes a few minutes to make sure you really do have the best value
policy to suit your needs."
Notes to Editors: 1 Opinium Research carried out an online poll of 2019 British adults from 11 - 15 February 2011. Results have been weighted to nationally representative criteria. www.opiniumresearch.com.
According to the DFT, there are 33,481,604 (or 33.4) million drivers
in the UK: www.dft.gov.uk/pgr/statistics/datatablespublications/nts/driving-availability/nts0206.xls
(based on 67.6% of the population being the main driver or other driver of a car) 19 per cent of 33.4 million = 6,361,504, or 6.3 million. Car Insurance - Average saving of GBP270 with moneysupermarket.com when shopping around for car insurance. Based on online independent research by Consumer Intelligence during.. GBP270 x 6,361,504 = GBP1,717,606,080 wasted 2 Eight per cent of 33.4 million drivers = 2,678,528 3 The rising cost of car insurance Over the past year car insurance quotes have increased on average by 31%. The average moneysupermarket.com quote has gone from GBP519 to GBP680 (44p per day). Figure calculated using 21,370,762 enquiries made between 11/01/2010 and 13/01/2011. (Due to the length of the URLs, it may be necessary to copy and paste the hyperlinks into your Internet browser's URL address field. Remove the space if one exists.) For further information please contact: Nicki Parry PR Officer +44(0)787-237-9549 firstname.lastname@example.org
For further information please contact: Nicki Parry, PR Officer, +44(0)787-237-9549, nicola.parry at moneysupermarket.com
Tags: Chester, England, February 22, Moneysupermarket.com, United Kingdom