Car insurance laziness costs drivers £250

MOTORISTS wasted £565million last year by allowing their car insurance to be autorenewed instead of shopping around.

Rather than looking for a more competitive policy, 35 per cent of drivers are still allowing their car insurance to roll over automatically, a study reveals.

It found that “sheer laziness” on renewals was hitting drivers in the pocket.

Despite the Financial Conduct Authority forcing insurers to notify customers of upcoming price rises before their car insurance is auto-renewed, more than 14 million failed to act on this information last year.

The FCA brought in the legislation in April 2017 in a bid to make motor insurance policies more transparent and help consumers get the best deals available to them.

The importance of shopping around was shown by two-thirds of drivers seeing their premiums rise in 2018, with the average cost of a fully comprehensive policy increasing by £40.

But more than half of these customers are still failing to look for more competitive deals, even though some could save up to £259 a year by getting one. Leading price comparison website MoneySuperMarket, which carried out the analysis, also found younger generations are most likely to be swayed by marketing campaigns and free gifts when it comes to choosing an insurer, while older Brits value trust more.

Emma Garland, an analyst at MoneySuperMarket, said: “Despite significant cost savings to be made by switching insurer, over a third of drivers still allow their policy to automatically renew.

“Not only is this costing people millions of pounds a year at a time when insurance premiums are on the rise again, it also highlights that the FCA’s legislation hasn’t had a huge impact on consumer behaviour.

“No matter when your insurance is up for renewal, it pays to shop around and find a better deal.

“By taking out a policy with a different insurer you could save up to £259 on your premium, which for many people is probably the next four tanks of petrol.”