Comparison website Gocompare.com has warned motorists over renewing their car insurance automatically, claiming that it leads to a staggering £1.5bn being wasted each year.
This claim comes following Gocompare.com’s Car Insurance Auto-Renewal Study, which found that a staggering 5.25m motorists allow their car insurance to be renewed automatically at the end of their policy, without shopping around to see if they could secure a better deal.
Among the key findings from the research were:
- Only 43 per cent of respondents checked to see how much their premium had changed from the previous year’s premium
- Just 29 per cent checked over the renewal documents to see if their cover had changed
- Just 29 per cent said they read their renewal information thoroughly
- 34 per cent do not trust their insurance company to tell them if they are overpaying for their cover
“With car premiums hitting record highs, it’s now more important than ever to make sure you’re not getting a raw deal,” said Matt Oliver, of Gocompare.com Car Insurance.
“At renewal, insurers will offer to continue your cover - without you having to lift a finger. But, 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. The best deals nearly always go to new customers.
“If you decide to switch you’ll need to tell your current provider. Most car insurance policies automatically renew, unless you notify the insurer to the contrary. If you don’t stop the auto-renewal you could be faced with a hefty cancellation charge,” he continued.