BRITISH motorists are on cruise control when it comes to renewing their insurance premium.
Research has revealed more than a third of drivers let their annual car insurance policy auto-renew instead of shopping round for the best deal.
Customers who roll over their contract typically end up paying inflated premiums as part of a ‘loyalty penalty’ – and the numbers are increasing year-on-year.
Two in five customers who auto-renewed believe they were getting the best possible deal according to the moneyexpert.com research.
However, data from the same survey, as well as from the Association of British Insurers (ABI), Financial Conduct Authority (FCA) and Citizens Advice, suggests drivers who auto-renewed were 50 per cent more likely to be paying more than £800 for their car insurance than if they found a new policy by other means.
Mike Rowe, Chief Operations Officer at moneyexpert.com, said, “Our survey results show that drivers who let their car insurance auto-renew are paying more than those who shop around online or negotiate a better deal with their existing provider.
“This is consistent with findings in countless other reports, including from the ABI, FCA, and Citizens Advice – all of whom warn against the ‘loyalty penalty’ faced by insurance customers who stick with their provider year after year.”