A leading car insurance comparison website has conducted a study which shows that one out of every four drivers is missing out on cheap car insurance by remaining with their existing service providers at the time of renewal.
This failure to look for alternative car insurance quotes at the end of the policy period is a mitigating factor behind the failure to realise cheap car insurance quotes that may well be otherwise available. The study in question looked into UK drivers’ habits with respect to applying for car insurance. The results have shown that a quarter of the population automatically opts for renewal of the same policy, turning a blind eye to better offers and possible changes in the situation in the preceding time period. According to Pete Harrison, car insurance expert from a prominent car insurance comparison website, this is quite financially irresponsible.
Harrison says that shopping around for a better insurance policy at the end of the stipulated time period can result in savings of £348 per year on an average. In the present scenario, this comes as a healthy respite when the owner is already struggling to cope with the staggering expenses incurred as a result of owning a car.
Also, the study shows that one fifth of UK motorists will switch providers if the change would save them £25 or less. A £54.33 average saving per year is all it takes to convince drivers to change policies, the study noted.
Harrison says that a bit of pro-activeness in searching for a better cover deal may end up in saving hundreds of pounds for you, annually speaking.
Sources quoted Harrison as saying, “British motorists are really feeling the financial strain and are desperately looking for ways to cut costs, so its unsurprising our research has found one in five drivers are only looking for savings of £25 on their car insurance premiums to justify the move to a better value premium.”
He continues, “Those drivers who are unconvinced of the merits of shopping around, and automatically renew their car insurance, could achieve above and beyond their desired saving by taking the time to scour the market.”
“The average saving to be made by searching the car insurance market online is £348, so motorists could in fact save themselves £293 more, certainly a welcome surprise to those who doubt the savings that can be made,” he said.
Also, it has been found that cheaper car insurance quotes are the main motivation behind switching insurance providers for almost 70 percent of drivers. Gift vouchers, cash back offers and free breakdown cover are the main motivating factors for another seven percent.
Harrison explained the reasons behind switching car insurance providers: “With motoring costs continuing to rise and the price of car insurance making up a high percentage of that cost, it makes sense that getting a cheaper deal is the main motivation for drivers to switch their car insurance.”