A quarter of motorists missing out on cheaper car insurance
by admin on Nov.26, 2011, under Car insurance
Advertising feature. One in four drivers are missing out on cheaper car insurance from Moneysupermarket by staying with their existing provider at renewal time, research has found.
The leading price comparison website has looked into the habits of UK motorists when it comes to buying car insurance and the results show that a quarter automatically renew. Doing this, however, is financially irresponsible, according to Pete Harrison, a car insurance expert from Moneysupermarket .
Harrison certainly has a point when shopping around for car insurance and switching to the best deal available could save drivers an average of £348 annually . That’s a staggering amount of money to save every year at a time when so many people are under increasing pressure as the cost of owning a vehicle continues to rise.
The study also found that a fifth of drivers would switch insurance providers if it meant they could save £25 or less and that £54.33 is the average saving that would be enough to persuade motorists to swap .
The advice from Harrison to all motorists is simple - be pro-active in the search for a fairer deal to get covered and you may end up hundreds of pounds better off in the short term.
“British motorists are really feeling the financial strain and are desperately looking for ways to cut costs, so its unsurprising our research has found one in five drivers are only looking for savings of £25 on their car insurance premiums to justify the move to a better value premium,” said Harrison.
“Those drivers who are unconvinced of the merits of shopping around, and automatically renew their car insurance, could achieve above and beyond their desired saving by taking the time to scour the market.
“The average saving to be made by searching the car insurance market online at MoneySupermarket is £348, so motorists could in fact save themselves £293 more, certainly a welcome surprise to those who doubt the savings that can be made.”
Moneysupermarket’s investigation also revealed that the main motivation for switching insurers for two thirds of drivers (69 per cent) would be due to finding a cheaper quote elsewhere. Seven per cent, meanwhile, would change if offered a gift voucher, free breakdown cover or cash back.
Harrison continued: “With motoring costs continuing to rise, and the price of car insurance making up a high percentage of that cost, it makes sense that getting a cheaper deal is the main motivation for drivers to switch their car insurance.
“Drivers can help to mitigate these costs by getting online and comparing policies to see what prices are on offer, It only takes a few minutes, so consumers should do their research to find the best deal for their situation and make the switch to start saving.”
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