Drivers 'waste £9.4bn by sticking with insurers'

29/08/2009

Motorists are set to blow £141 each this year - or £9.4 billion in total - by failing to shop around for a new car insurance policy, a new study has claimed.

One in five drivers currently renew their insurance with their current provider automatically without checking the market for a better deal, moneysupermarket.com said.

Some 12 per cent of these drivers think they cannot find a lower price, while eight per cent said they cannot be bothered to see if they can save money.

However, Steve Sweeney of moneysupermarket.com said in most cases, loyalty does not pay for car insurance customers.

He said that while providers may "lure" drivers in with special discounts not available to existing policyholders, renewal prices often include a "hefty premium".

"Providers count on your apathy to reap the profits," he commented.

According to AA Insurance's British Insurance Premium Index, the average cost of a year's comprehensive car insurance rose by 3.5 per cent to £778.13 between April and June.

For the year ending in June, car insurance costs rose by over 11 per cent.

Tags; Advice on Travel Costs, Young Family Finances, Credit Card Lifestyle,

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