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Motorists Waste £2 Billion Automatically Renewing Car Insurance

CHESTER, England, February 18, 2013 /PRNewswire/ --

  • Motorists could each save £300 a year by switching
  • Seven million drivers stay loyal to their existing provider at renewal time and two million can't be bothered to shop around
  • Seven per cent of motorists will buy a new car this March

British motorists are burning over £2 billion as a nation by staying loyal to their existing car insurance provider. By sticking with an existing provider at renewal time and not shopping around for a better deal, drivers could be throwing away £300 each, says MoneySupermarket.com.

With the new '13' plate car registrations released next week, research has found seven million motorists (19 per cent) automatically renew their car insurance with their existing provider.[1] 11 per cent don't think they could save money, and worryingly a further six per cent, or two million drivers,[2] just can't be bothered to shop around for a better deal

On average motorists remain faithful to their existing provider for 2.7 years, with the over 55's being the most loyal group sticking by their insurer for an average of 3.5 years. London drivers are the most apathetic of all the regions, staying loyal for 3.6 years. The most active and savvy switchers at renewal time are living in the Yorkshire and Humber area who tend to remain with their provider for 1.8 years on average.

Pete Harrison, car insurance expert atMoneySupermarket, said: "At a time when it's pretty tough out there for motorists, it's a shame to see so many drivers surrender so easily to their insurance provider's renewal quote instead of taking action and saving cash. Motorists don't even need to 'drive' a hard bargain; on average there's £300 cash up for grabs to those who don't just accept the renewal price generated by their car insurance provider.

"No matter where you live or how old you are, it's vital to do your homework at renewal time, as searching for a better deal doesn't cost you anything and there is much to gain. It takes about five minutes to check if there is a cheaper policy out there to suit your individual needs."

BRITS DRIVING A NEW CAR FROM THE FORECOURT

Despite the nation burning cash at renewal time, seven per cent of motorists are on the lookout for a new set of wheels this March, with four per cent saying they will buy a new car with the '13' plate. Over a quarter of those surveyed (27 per cent) would like a new car but can't afford it. Interestingly, two per cent of drivers say they are superstitious and don't want a '13' number plate.

Notes to editors:

Opinium Research carried out an online survey of 2,003 UK adults aged 18+ from 8th to 11th of February 2013. Results have been weighted to nationally representative criteria.

http://www.opinium.co.uk

Average saving of £300 with MoneySupermarket.com when shopping for car insurance. Based on online independent research by Consumer Intelligence during November 2012.

[1]According to the ONS there are 49,969,000 adults (18+) in the United Kingdom in 2012. According to the research 74 per cent of UK adults (18+) drive some form of vehicle, therefore there are approximately 36,977,060 (37 million adult drivers) in the United Kingdom.

19 per cent of respondents automatically renew their car insurance with their existing provider. 19 per cent of 36,977,060 drivers = 7,025,641 drivers

7,025,641 x £300 = £2,107,692,420 (£2.1 billion)

[2]Six per cent of respondents automatically renew their car insurance because they can't be bothered to shop around. Six per cent of 36,977,060 = 2,218,624 or 2.2 million drivers

MoneySupermarket.com compares (at 30th Jan 2013)

  • 134 car insurance brands and 97 home insurance brands
  • 9 broadband providers and 20 energy providers   
  • 31 unsecured loan and 5 secured loan providers
  • 62 mortgage lenders and 27 credit card providers
  • 62 savings providers and 37 current account providers.
  • Over 630,000 mobile phone deals

Our customers

We help our customers to save money on all of their household bills by providing a free, easy to use online service so they can compare a wide range of products in one place and find the product most suited to their needs. Our size means we are able to offer our customers exclusive, market-leading deals, including some they can't even get direct from providers.

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Our revenue comes predominantly from fees paid to us by product providers when a customer clicks through to their website and actually applies for or purchases a product. It is a success based marketing fee.

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For further information, please contact: 

Paul Lawler/Kate Murphy
+44(0)787-237-9545 / +44(0)1244-221978
paul.lawler@moneysupermarket.com / kate.murphy@moneysupermarket.com


SOURCE MoneySupermarket.com

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