GBP317m Car Insurance Renewals Bill Hits Motorists Hard

CHESTER, England, February 2, 2011 /PRNewswire/ -- Research by moneysupermarket.com ( http://www.moneysupermarket.com/car-insurance/) shows UK motorists, who delay renewing their car insurance are adding nearly GBP317 million a year collectively* to the cost of their cover.

The analysis of over 21 million car insurance quotes by the UK's leading price comparison site found car insurance premiums have increased by 31 per cent on average, over the past year,** that is 44p added to every policy, each day. "Drivers really need to act as quickly as possible when they know their car insurance is about to expire," said Peter Harrison, car insurance expert at moneysupermarket.com. "Our research shows that every day they delay shopping around and looking for the best deal adds extra cost to their premium price. With so many factors making the cost of motoring much less affordable for a large number of people, every penny counts and being quick off the mark can really make all the difference."

The rising cost of car insurance seems to be showing no sign of slowing as personal injury claims, uninsured drivers and fraud are still major problems in the insurance industry. This is backed up by Peter Harrison who said "We still haven't seen a slowdown in the rising costs of premiums and unfortunately we don't know when prices will stabilise. The 31 per cent increase we have identified will impact many consumers when they are already finding it hard to pay their way. The best advice is to shop around and compare policies to ensure that you get good value for money and the policy you need at the best possible price. It really does pay to be proactive and not wait for your renewal notification. Renewing with your existing provider may not be the best option. Shopping around for the best deal on car insurance can save on average GBP280 through moneysupermarket.com."

With escalating fuel costs, every motorist is feeling the pinch with a large proportion of drivers changing their driving habits and some not getting behind the wheel at all.*** It is no wonder they are taking their time, shopping around for the best deal when it comes to their car insurance as a policy that cost GBP500 in January 2010 will now cost GBP655, a huge GBP155 increase.****

The message is clear, motorists who receive their car insurance renewal are being urged to compare prices immediately and make a decision on a policy as soon as possible. By leaving it till the last minute motorists will see an average GBP13.20 rise in the cost of their car insurance premium.

Notes to editors:

* 24million private car insurance policies sold annually in the UK. Source ABI

GBP13.20 x 24,000.000 = 316,800,000

** Over the past year car insurance quotes have increased on average by 31%.

The average moneysupermarket.com quote has gone from GBP519 to GBP680 (44p per day).

This figure was calculated using 21,370,762 enquiries made between 11/01/2010 and 13/01/2011

***January 2011

Are record fuel prices forcing you to change your driving habits?

    
    - Yes - I no longer drive a car because the associated costs
      are too high - 4.9%
    - Yes - I've reduced my car usage - 62.1%
    - No - I can still just about afford it - 17.2%
    - No - I've not changed my driving habits - 15.8%

Total votes: 3198

****Percentage increase affect on premiums

    
    Starting premium End Premium  Difference  Percentage increase

           GBP100.00    GBP131.00    GBP31.00         31%
           GBP200.00    GBP262.00    GBP62.00         31%
           GBP300.00    GBP393.00    GBP93.00         31%
           GBP400.00    GBP524.00   GBP124.00         31%
           GBP500.00    GBP655.00   GBP155.00         31%
           GBP600.00    GBP786.00   GBP186.00         31%
           GBP700.00    GBP917.00   GBP217.00         31%
           GBP800.00  GBP1,048.00   GBP248.00         31%
           GBP900.00  GBP1,179.00   GBP279.00         31%
         GBP1,000.00  GBP1,310.00   GBP310.00         31%
         GBP1,100.00  GBP1,441.00   GBP341.00         31%
         GBP1,200.00  GBP1,572.00   GBP372.00         31%
         GBP1,300.00  GBP1,703.00   GBP403.00         31%
         GBP1,400.00  GBP1,834.00   GBP434.00         31%
         GBP1,500.00  GBP1,965.00   GBP465.00         31%
         GBP1,600.00  GBP2,096.00   GBP496.00         31%
         GBP1,700.00  GBP2,227.00   GBP527.00         31%
         GBP1,800.00  GBP2,358.00   GBP558.00         31%
         GBP1,900.00  GBP2,489.00   GBP589.00         31%
         GBP2,000.00  GBP2,620.00   GBP620.00         31%
         GBP2,100.00  GBP2,751.00   GBP651.00         31%
         GBP2,200.00  GBP2,882.00   GBP682.00         31%
         GBP2,300.00  GBP3,013.00   GBP713.00         31%
         GBP2,400.00  GBP3,144.00   GBP744.00         31%
         GBP2,500.00  GBP3,275.00   GBP775.00         31%
         GBP2,600.00  GBP3,406.00   GBP806.00         31%
         GBP2,700.00  GBP3,537.00   GBP837.00         31%
         GBP2,800.00  GBP3,668.00   GBP868.00         31%
         GBP2,900.00  GBP3,799.00   GBP899.00         31%
         GBP3,000.00  GBP3,930.00   GBP930.00         31%

Contacts - Nicola Parry, moneysupermarket.com, nicola.parry@moneysupermarket.com, +44(0)1244-370-318