Gocompare.com’s Car Insurance Auto-Renewal Survey reveals that 5.8 million motorists a year fall into the auto-renewal trap by simply allowing their car insurance to automatically renew without checking other quotes first.
September is traditionally one of the busiest months for car insurance renewals due to the high volume of new car sales. However, the new survey shows that many drivers are likely to fall in the auto-renewal trap.
Worryingly, 18% say they allowed their car insurer to automatically roll-over their policy for another year at their last renewal – without checking whether they were being offered a good deal.
Gocompare.com’s Car Insurance Auto-Renewal Survey also revealed that on average, drivers have been with their current insurer for 3.3 years, but a 16% have stuck with the same provider for five years or more.
However, many of those surveyed don’t feel insurance companies reward them for their loyalty, 58% think that insurers offer a better deal to new customers than those who renew.
When asked why they allowed their car insurance to renew automatically 39% thought that because their provider was the cheapest last year, they would be good value this time around too.
Other reasons for sticking with the same provider included loyalty (24%), a good experience with a past claim (11%) while 5% said that they weren’t confident enough to switch, finding car insurance too confusing.
