Brits ‘Overpay’ £675million On Car Insurance Every Year

Tue 10th Sep 2019

More than six million UK drivers every year are forgetting to change their insurance provider leading to an annual cost of £675million in missed savings.

Research from one of Britain’s leading comparison websites, Compare the Market, has found that 16 per cent of car owners admit that they forget to change their car insurance policy when it comes to an end, and by letting it automatically run on to a new policy with the same company they are effectively penalised financially.

By analysing their own data sets Compare the Market estimate that the difference between the cheapest average insurance policy and the average cost is £110. By multiplying £110 by the 6,144,000 (16 per cent of motorists in the UK) who don’t remember to change their provider, they come up with the huge £675million figure.

Dan Hutson, head of motor insurance at Compare the Market said: “Car insurance is a significant expense for many drivers and the cost of cover has risen steeply over the past few years. Nearly a third of motorists say that they struggle to afford the cost of insurance. 

“The most effective way to avoid price hikes is to compare the market for the most competitive provider but taking the time to switch is something many people just forget to do.”

The survey of 2,041 car owners in mid-August also found that the main reason people failed to change their provider was that it is seen as a chore, with 55 per cent of 18-24-year-olds saying that it was a hassle. Ironically the youngest age group is hit hardest when it comes to insurance premiums - by changing they could save on average £226.