Almost half of UK drivers let their car insurance renew automatically. A new report shows 46% of drivers simply accept their old policy. This happens even though they could save a lot of money. It is a big trend happening right now.
Many drivers miss out on better deals every year. You could save around £300 by checking other options. This is a huge sum of money for just a few minutes of effort.
Why Drivers Auto-Renew Car Insurance
Some drivers renew automatically because it feels easier. They might forget their renewal date. Others trust their current insurance company. They believe they are getting a good deal. However, this often is not true.
Even with new rules, shopping around helps you save. Regulators changed rules in January 2022. Insurers cannot charge loyal customers more than new ones. This was meant to stop “loyalty penalties.” But prices are still going up for everyone.
The average cost of motor insurance recently rose by £60. This shows prices are increasing. Sticking with your old insurer without checking is a costly mistake. You might be paying much more than you need to.
How to Save on Your Car Insurance Today
You should always compare prices. Do not just accept your renewal offer. Get quotes from many different companies. Comparison websites make this very easy. They show you many options fast.
Look at your renewal letter carefully. It will show your new price. Then, compare this price to other quotes. This simple step can put hundreds of pounds back in your pocket. It is important to do this every year.
Consider what coverage you need. Do not pay for things you do not use. You can often adjust your policy. For example, reducing your mileage might lower your premium. Increasing your voluntary excess can also help. Always check the impact of these changes.
Here are some quick tips to save money:
- Always compare prices before renewing.
- Use multiple comparison sites.
- Check if your details are accurate.
- Consider a higher voluntary excess.
- Think about your annual mileage.
This smart approach takes little time. Yet, it offers significant financial benefits. Do not be one of the 46% missing out. Start saving on your car insurance today. For more general advice on car insurance, you can visit MoneyHelper’s guide. Also, current market data confirms premium rises, as shown by the Association of British Insurers. These rising costs make shopping around even more vital. Make sure you get the best deal for your vehicle.
