Loyalty the worst policy

SUNDAY MIRROR Insurance customers’ £5bn rip-off

DRIVERS and homeowners who stick with the same insurers are being stung by a £5billion “loyalty tax”.

Millions are being routinely overcharged for accepting renewals rather than shopping around for cheaper deals.

Research by Gocompare.com shows customers could save up to £364 a year on their home and car insurance.

Matt Oliver, from the price comparison website, said: “Every year, millions are stung by the annual auto renewal.

“Loyalty doesn’t pay with insurance. Best deals typically go to new customers. Failing to compare renewal premium and cover levels every year will mean you end up paying a ‘ loyalty tax’ to your insurer.”

Gocompare.com says 64 per cent of the UK’s 45.5 million drivers let their cover roll over in the past year. Half of them – 14.8 million drivers – could have saved up to £286 by switching, totalling £4.2billion.

And 71 per cent of the UK’s 28 million homes stuck with the same insurer. On average, half of these could save up to £77, more than £790million in total.

But in a victory for campaigners, from April, firms must tell clients what they GET your Ed round this one – a perfect portrait of a superstar on the back of a dirty white van.

Flower delivery driver Rick Minns, 42, etched Ed Sheeran on his Mercedes Sprinter to mark new single Castle on the Hill. Rick, aka Ruddy Muddy, was inspired after hearing Ed’s vid was shot in Framlingham, Suffolk, where he works.

Art fans love his dirty motor masterpieces – and reckon he’s a grimy van Gogh. paid for their motor, travel and household policies when they get renewal documents.

And they will have to include a clear message encouraging them to shop around. But consumer groups fear insurers might try to hike prices before April.

Car insurance premiums have hit a record high, with the average policy costing £ 462. But firms deny profiteering and blame a rise in claims for whiplash injuries and the cost of repairing hi-tech motors.