Unfortunately, too many motorists automatically renew their motor insurance policies without bothering to check if they can arrange cover with an alternative provider cheaper or asking if their existing insurer will lower the quote provided to renew their insurance. Some interesting research has been carried out on behalf of the well-known price comparison website GoCompare.com some of which we thought we would highlight below.
It was found that, in a 12-month period to sometime in February 2021, 24% of drivers just allowed their car insurance policies to renew automatically compared to 15% of motorists in the same period last year. We are sure that you will agree that is a significant increase. If only those policyholders had taken the time to check if they could have got the cover cheaper elsewhere as it is quite possible that some may have been able to save themselves some money at what is a difficult period for many people due to the coronavirus pandemic.
It is interesting to read that 27% of motorists taking part in the survey felt that because they had believed they had got the cheapest deal on their car insurance in 2020 that they would get a good deal again. 23% of drivers stayed loyal to their existing insurer. 22% of motorists chose to keep their cover with the same provider as they paid their premiums by direct debit and did not want to be bothered with having to cancel the direct debit with their previous insurer and set up a new direct debit with their new insurance company.
It is concerning to read that only 49% of drivers compared how much they were paying last year with how much their renewal notice was. It is quite possible that some of those motorists may have been able to get the cover cheaper with another insurance company.
Another interesting statistic from GoCompare was that a saving of up to £277.17 per annum could be made by 51% of people with their car insurance premiums. We are sure that you will agree that is a significant sum of money.
It is worth mentioning that car insurance companies will possibly have paid out less in 2020 to meet claims by motorists involved in road traffic accidents than they did in 2019. This, in the main, can be attributed to the fall in the number of cars being seen on our road network during the pandemic as a large number of people worked from home thus leading to their being fewer road traffic accidents.
If your motor insurance is shortly coming up for renewal then why not get in touch with us with a view to obtaining a competitive quotation without any obligation to proceed. We look forward to being of assistance.