Drivers are losing an estimated £1.9 billion a yr by permitting their automobile insurance coverage to auto-renew. That’s the warning forward of the September peak in automobile insurance coverage renewals.
Round a fifth (21 p.c) of motorists allowed their insurance coverage coverage to auto-renew within the final six months. This compares with 15 p.c when the survey was final accomplished in February 2020. This can be a 40 p.c improve within the variety of drivers auto-renewing their insurance coverage.
The variety of motorists auto-renewing with out procuring round for aggressive quotes is at its highest since February 2017.
When requested why they allowed their coverage to routinely renew, a fifth of drivers stated their current supplier was the most affordable final yr, in order that they believed they’d supply good value. One other fifth stated they spoke to their insurance coverage firm about lowering their funds or taking a premium vacation.
Different causes for sticking with the identical supplier included loyalty (22 p.c), the effort of switching (17 p.c), and worries over the lack of their no-claims bonus (11 p.c).
Lower than half of drivers examine their renewal premium towards what they paid for canopy the earlier yr. Only a third examine their renewal paperwork for any modifications to the quilt they have been supplied.
Circumstances change, so a discount within the annual mileage, including or eradicating extra drivers, or a change in occupation may have an effect on the price of insurance coverage.
Paying a ‘loyalty tax’
Lee Griffin, CEO and founding father of GoCompare, stated: “September is historically one of many busiest months for renewals attributable to historic new automobile gross sales.
“Our analysis present that thousands and thousands extra drivers are usually not actively participating with the renewal course of this yr, doubtlessly leaving themselves tons of of kilos out of pocket by successfully paying a ‘loyalty tax’.
“Drivers who’re nonetheless paying their premiums actually need to fastidiously take into account their choices and store round to see what different insurers are keen to supply them.
“The excellent news is that automobile insurance coverage premiums are falling attributable to much less visitors on the roads and fewer claims. Consequently, some drivers may really see a premium discount on their renewal letter, nevertheless that’s the sign that they might in all probability get a fair higher deal elsewhere.”
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