British motorists are spending on average an extra £220 each year on their car insurance by simply opting to auto-renew with their existing provider rather than looking around for a more competitive deal.
An estimated 9 million drivers chose to auto-renew their car insurance deal last year with their existing supplier, which collectively added an extra £1.9 billion onto the amount spent on these premiums in 2013.
This is because suppliers tend to raise the costs of premiums when they are auto-renewed, and motorists accept this actuality due to either negligence or their perception that switching is a laborious and inconvenient procedure.
Recent research revealed that a staggering 25% of motorists who auto-renewed did so because they hold the false impression that they wouldnít shave costs off their car insurance by switching to a new supplier, or because they were simply not prepared to put an effort into shopping around in order to save a perceived small saving.
Another 20% of those polled in the study also said that they only chose to shop around for a new provider once, as they believed that they would be unable to find an even more competitive offering the next year when it came to renewing their car insurance again.
Motorists based in London were identified as being the most naive towards switching insurance provider, with 31% of those polled revealing that they had not considered switching due to a lack of clarity behind the procedure.
Meanwhile, those living in the Midlands were highlighted as the most astute motorists, with just 15% revealing that they hadnít considered switching.
Collectively, the study suggests that motorists are losing out of money because they are simply unaware of how easy it is to switch provider in the modern era and how much it can actually save them each year.
If you are someone whose insurance premium deal is coming to an end, then do not simply auto-renew and take the easy option.
Instead, devote a small piece of your time to comparing online on a comparison site, because you will be given a clear idea of what the cheapest deals for your circumstances are.
Switching is an exceedingly easy procedure from there, as you simply select which deal you wish to purchase, check out on the site, and you will be moved to the new deal within days.
Lee Griffin, a car insurance representative, highlighted the value of this, arguing: ëThe great news for drivers is that there are potentially big savings to be made on car insurance at the moment.
ëWhen average prices are falling you need to shop around as it means certain insurers are cutting rates for new business.
ëAs such, anyone with a policy due for renewal soon needs to get online and find the insurer that is prepared to offer them the cover they need at a good price, rather than just sitting back and relying on their existing insurer to automatically reward their loyalty with a lower premium.í