1 in 10 motorists still letting car insurance auto-renew

Richard Aucock, Contributor
Mon, 04 Mar 2024

Four million motorists – almost 1 in 10 of drivers – are paying too much for car insurance by letting their policy auto-renew with their current provider, rather than shopping around for a better quote.

Go.Compare research said this was despite more than 80% of those surveyed complaining that the price of their car insurance had rocketed over the past year.

Its findings showed that the average car insurance premium has risen 35% in the past 12 months.

The comparison site added there were some surprising regional disparities in the figures too, with 16% of Londoners simply letting their car insurance auto-renew. This compares to just 4% of people in the East Midlands.

When asked why they went for auto-renewal, 1 in 4 motorists said that because their current insurer was cheapest last year, it would be this year too. Indeed, almost 1 in 2 of those aged 65 or over cited this as the reason.

Another quarter valued loyalty – as their current insurer had always looked after them, they saw no need to change.

The hassle factor plays a part too: 1 in 5 said the bother of having to cancel a monthly direct debit, or even the perceived hassle of switching, is why they stick with their current car insurer. Almost 1 in 3 of those aged 18-24 said hassle was the reason for sticking, rather than twisting.

"With premiums still on the increases, it’s now more important than ever to shop around at renewal," says Go.Compare’s Tom Banks.

He adds that insurance companies will change how they price for certain risks and, just because one insurance company was the right policy or cheapest for you last year, it doesn’t mean it will be the same this year. Shopping around remains one of the best ways to save on your insurance.

"Simply letting your insurance renew carried an additional risk, if you haven’t checked you still have the cover that you need, or if there have been any changes from last year. This could actually end up hitting you in the pocket in the event of making a claim," addas Banks.

Ask HJ

I'm struggling to get insurance now I'm over 80 - what can I do?

I am over 80 and a very experienced driver but my recent quotes from mainstream insurance companies have more than doubled my quotes. My main car is a BMW 330e and I have a Mercedes SLK for summer use doing no more than 2000 miles a year. In one case LV said they were doing me a favour, long standing customer as they no longer insure anyone over 80. Can they do this and are their any companies which take into account one’s experience and fitness to drive rather than relying on a algorithm?

When it comes to offering prices to customers, insurers will make their decision based on the risk of that customer making a claim. Some demographics, such as older or younger drivers, or those living in some areas of the UK will all fall into risk categories, and some insurers may choose not to cover these groups. However, this is only the case for a small number of companies, and there will be insurers out there who will be willing to provide cover for some risk groups. Using a price comparison site like www.Confused.com, which works with over 150 insurers, is the best way to run a quote and find an insurer that is willing to provide you with insurance, and you can compare all of the prices in one place too so you can find the cheapest deal.

Answered by Louise Thomas

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