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Drivers waste £2billion a year by failing to shop around when renewing insurance

It has been revealed that drivers waste £2 billion a year auto-renewing their car insurance policies.

Drivers waste £2 billion by allowing their insurance providers to automatically renew insurance policies on their behalf. Research by price comparison website Gocompare.com found that 8.8 million motorists miss out on an average annual saving of £238 by failing to shop around. 

Chief operating officer Lee Griffin at Gocompare.com said: “The first thing customers want to know when they get their car insurance renewal is how much their premium has changed compared to the previous car.” 

“Sadly, it is the one piece of information they are unlikely to find on the renewal letter itself. As a result, only 52 per cent of drivers go to the effort of checking last year’s premium, and it is unlikely to be one of the reasons why nearly a third of drivers simply renew with the same insurer without shopping around.” 

Mr Griffin added: “Insurers rely on a certain degree of apathy from their customers and, worse still, around one in 10 drivers say they actually feel under pressure to renew with their existing insurer.”

“It is important to remind consumers that they have a range of options at renewal but it all begins with understanding how your premium has changed, how the cover offered may have varied and how your own needs may have altered.” 

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