Motorists waste GBP1.3bn during car insurance renewals season

7.3 million drivers automatically opt to renew with their existing insurer.

Loyalty doesn't pay - GBP180 wasted a year yet motorists stay loyal to their provider for 2.8 years With the new '10' car registration plates out next week (1 March), it is prime season for motorists to renew their car insurance.

Research reveals drivers are set to waste GBP180 each or GBP1.3 billion collectively by sticking with their existing insurer and not shopping around, according to moneysupermarket.com.

LOYALTY DOESN'T PAY: Research from the leading comparison site reveals more than one in five drivers (22 per cent) automatically renew their car insurance with their existing provider, rather than shopping around to find a better deal.

Of these, 14 per cent don't think they can find a better deal, and eight per cent, or 2.7 million motorists, say they will automatically renew their insurance because they can't be bothered to see if they can save money.2 Drivers in London (30 per cent) and the North East (28 per cent) are the worst culprits for not shopping around when renewing their insurance policy.

Steve Sweeney, head of car insurance at moneysupermarket.com said: "With car insurance renewals season in full swing, it is shocking to see the sheer scale of drivers who won't spend a few minutes to see if they can save money when renewing their insurance.

Our research has found drivers could save themselves GBP180 a year on average by scouring the market and with the recent news that comprehensive car insurance increased by nearly 19 per cent during 2009,3 it is more important than ever to make sure you shop around for a great deal on your car insurance at the best possible price.

"When newly insuring a car, providers may lure drivers in with a competitive deal or special discount in the first year which is not ordinarily available to existing policy holders.

Rest assured if you can't be bothered to shop around in the second year, the providers will be rubbing their hands with glee as a renewal price will often include a hefty premium - hardly the thanks deserved for being a loyal customer.

The research also reveals drivers stay faithful to their provider for an average 2.8 years, with motorists aged 55 and over the most loyal of the age groups; they stick with their provider for an average 3.5 years.

Likewise, motorists in the North East take the top spot for the most loyal region, continuing their policy with the same insurer for an average 3.4 years.

Steve Sweeney continued: "Providers count on customer apathy to reap the profits, so it is alarming so many motorists are prepared to waste their hard-earned cash by not looking for a better deal.

Even if you think your quote can't be beaten, it only takes a few minutes to make sure you really do have the best value policy to suit your needs.

In addition, if you have not made a claim in the past twelve months, you should normally expect to pay less than you did the previous year.

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