4m motorists still letting their car insurance policy automatically renew
Go.Compare car insurance has today revealed that 4 million (almost 10 per cent)* of motorists are letting their annual premiums automatically renew – without shopping around.
The comparison site has issued new research which interviewed** 1500 people with a current car insurance policy and, found that, despite more than 80% per cent of those who took part reporting their premiums have rocketed over the past year, almost 10% automatically renewed their car insurance policy, without shopping around.
The results also suggest that London had the highest number (16%) of motorists anywhere across the UK who are simply letting their car insurance renew, compared with just 4% from the East Midlands.
Meanwhile 40% of respondents said the reason they let their car insurance automatically renew is because their present insurer was cheapest last year and therefore believe they will be good value again this year and see no reason to switch. 49% of those aged 65 and above reported this as the reason why they allowed their insurance to automatically renew, compared with 23 per cent of younger motorists aged 18-24.
Almost a quarter (23%) of all those interviewed as part of the research revealed loyalty was also a major factor in their decision not to shop around at renewal time, which they didn’t feel was required as their current insurer has always looked after them.
Between 15-20% also said either the hassle of having to cancel a monthly direct debit and setting up a new one, or simply that they felt switching would be a lot of hassle or very difficult, were other common reasons why people decide to stick rather than twist with their car insurance provider.
The former is also more prevalent in younger age categories, with 35% of motorists aged 18 to 24 citing not wanting the hassle of cancelling a direct debit and setting up a new one as a primary reason for not shopping around, compared with 11 per cent of those aged 65 and above, 14% of those aged 55-64 and 16% of those aged 45-54.
And 10% of those interviewed as part of the research said they were worried they would lose their no claims bonus if they switch or end up without insurance – or simply that they find car insurance confusing and don’t feel they are confident enough to switch.
Tom Banks, car insurance spokesperson for Go.Compare, said of the research: “With premiums still on the increase, it’s now more important than ever to shop around at renewal.
"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 at renewal also remains one of the best ways to save on your insurance. Simply letting your insurance renew may seem like an easy option, but this could actually end up hitting you in the pocket in the event of making a claim – particularly if you haven’t checked you still have the cover that you need or if there have been any changes from last year.”
Go.Compare’s own price index recently revealed that average car insurance premiums have risen by 35% in 12 months***. The comparison service has compiled a guide with tips and advice on how to get cheaper car insurance, which can be found at: https://www.gocompare.com/car-insurance/guide/top-tips-for-cheaper-car-insurance/
Contact Information
Rubie Barker
Notes to editors
*Number taken from - https://www.gov.uk/government/publications/plan-for-drivers/the-plan-for-drivers#responding-to-drivers-priorities
Here, it says that there are 50 million people with a driving licence in Great Britain and around 40 million licensed vehicles across Great Britain. 10% of those who took part in the survey said they auto-renewed their policy – 10% of 40 million vehicles = 4 million.
**These findings are from a study released by Sago between January 26-29, 2023, among a random selection of 2,219 of GB adults ages 18+ who are online panelists of Sago’s Community.
The results were weighted by age, gender, region, and ethnicity to match the population, according to Census data. For comparison purposes, a probability sample of this size has an estimated margin of error (which measures sampling variability) of +/- 2.5%, 19 times out of 20. Discrepancies in or between totals when compared to the data tables are due to rounding. Excerpts from this release of findings should be properly attributed, with interpretation subject to clarification or correction.
***Cost of car insurance by quarter. Median premium paid by all customers of all ages, for annual payments all car insurance policies bought through Go.Compare. More information can be found here: https://www.gocompare.com/car-insurance/guide/how-much-does-car-insurance-cost/
Sago is the global research and data partner that connects human answers to business questions. Combining a legacy of impact, global reach, and innovative spirit, Sago enables clients to solve business problems through extensive audience access and an adaptive range of qualitative and quantitative solutions.
For further information please contact:
Lynsey Walden – lynsey.walden@gocompare.com Kath Chadwick – Kathryn.chadwick@gocompare.com
Or you can call 02920 020360. Keep up-to-date with GoCompare on Twitter; @Go.Compare
Notes to editors
About Go.Compare
Go.Compare is a comparison website that enables people to compare the costs and features of a wide variety of insurance policies, financial products and energy tariffs.
It does not charge people to use its services and does not accept advertising or sponsored listings, so all product comparisons are unbiased. Go.Compare makes its money through fees paid by the providers of products that appear on its various comparison services when a customer buys through the site.
When it launched in 2006, it was the first comparison site to focus on displaying policy details rather than just listing prices, with the aim of helping people to make better-informed decisions when buying their insurance. It is this approach to comparing products that secured the company an invitation to join the British Insurance Brokers’ Association (BIBA) in 2008, and it is still the only comparison site to be a member of this organisation.
Go.Compare has remained dedicated to helping people choose the most appropriate products rather than just the cheapest and works with Defaqto, the independent financial researcher, to integrate additional policy information into a number of its insurance comparison services. This allows people to compare up to an extra 30 features of cover.
Go.Compare is part of Future Plc and is authorised and regulated by the Financial Conduct Authority (FCA). More information can be found here www.gocompare.com or here https://www.futureplc.com/brands/.