Apathy Costs British Motorists £2.4 Billion Each Year

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moneysupermarket.com

23 Aug, 2011, 14:00 GMT

CHESTER, England, August 23, 2011 /PRNewswire/ --

  • Over seven million drivers stay with their existing provider at renewal time
  • 2.56 million motorists don't bother to see if they can save money on their car insurance
  • Motorists each waste £333 a year on average by not switching

Motorists are wasting over £2.4 billion a year by sticking with their existing car insurance provider and not shopping around for a better deal at renewal time[1], according to moneysupermarket.com.

With peak car insurance renewals season in full swing and new '61' plate car registrations out on 1 September, research from Britain's number one comparison site reveals 7.3 million drivers[2] (20 per cent) automatically stay with their existing car insurance provider rather than shop around to find a better deal. Of these, one in ten (9 per cent) don't think they can find a better deal, and a further seven per cent, or 2.56 million motorists[3], say they automatically renew their insurance because they don't bother to see if they can save money. A further four per cent of drivers will automatically renew to comply with recent legislation on Continuous Insurance Enforcement (CIE)[4]. This is despite research showing motorists can save £333 on average by shopping around for a better deal - an increase of £100 (42 per cent) on the average saving last year.

Pete Harrison, car insurance expert at moneysupermarket.com said: "Year-on-year, our research continues to show the importance of shopping around at renewal time as motorists could, and should, be saving themselves a packet!

"With the cost of living continuing to spiral, consumers are really feeling the pinch, so it is shocking many motorists are not using this opportunity to protect their hard earned cash by finding the best car insurance deal for their needs. The cost of motoring is continuing to increase with car insurance prices up on this time last year and fuel prices up to near record highs but drivers can help mitigate these costs by getting online and comparing policies to see where savings can be made."

LOYALTY WON'T BE REWARDED

The research also found drivers stay loyal to their provider for an average of two and half years, with the over 55s remaining the most faithful - sticking with their provider for an average of three years. Those aged between 18 and 34 are the least loyal, sticking to the same provider for only two years. Likewise, motorists in East of England (2.8 years) and London (2.9 years) take the top spots for being the most loyal regions, compared with drivers in the South West who only stay with their provider for 2.3 years on average.

Pete Harrison continued: "Providers rely on driver apathy at renewal time; loyalty isn't rewarded with a cheaper premium and drivers should do their homework to check whether they can find a better deal elsewhere. Even if you don't think your quote can be beaten, it only takes a few minutes to make sure you really do have the best policy to suit your needs - and if not, switch!"

Notes to Editors:

[1] Average saving of £333 with moneysupermarket.com when shopping around for car insurance. Based on online independent research by Consumer Intelligence during 1 July 2011 to 31 July 2011.

Research undertaken by Opinium Research based on an online poll of 2,019 UK drivers from 9th 11th August 2011. Results have been weighted to nationally representative criteria. http://www.opiniumresearch.com. According the ONS there are 49,529,000 adults (18+) in the United kingdom in 2011. According to the research 74% (1489 drivers / sample pop 2019) of UK adults (18+) drive some form of vehicle, therefore there are approximately 36,651,460 (36.6 million adult drivers in the United Kingdom).

20 per cent of respondents automatically renew their car insurance with their existing provider

20 per cent of 36.6 million = 7.32 million

7.32 million x £333 - £2,437,560,000 (£2.43 billion)

[2]20 per cent of respondents automatically renew their car insurance with their existing provider

20 per cent of 36.6 million = 7.32 million

[3]7 per cent of respondents automatically renew with their existing provider because they don't bother to shop around

7 per cent of 36.6 million = 2,562,000 (2.56 million)

[4]In a bid to protect motorists from uninsured drivers the Road Safety Act 2006 included Continuous Insurance Enforcement (CIE). This was brought in from May 23 2011 and will mean anyone who is registered as an owner of a vehicle, which isn't registered as SORN (Statutory Off Road Notification), MUST have valid car insurance for it or face a penalty.

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