Car insurance customers may be paying more by choosing not to shop around for a new deal once their current one expires, a personal finance site has claimed. Once a cover policy runs out, a number of motorists simply accept renewal payments and stay as they are according to the firm.
However, the website claimed that the average £300 yearly car insurance fee could see savings of around 20 per cent if people enquired elsewhere which equates to more than £230 per year.
Around one in ten motorists claim that they could not be bothered to do the research while more than one in six thought, wrongly, that they couldn’t get a cheaper deal elsewhere. However, more than a third of respondents stated that they would hunt out a less expensive policy. Young drivers were also more likely to change insurance companies and had much less brand loyalty.
This brand loyalty is not repaid by the insurance companies who tend to focus on new customers. A spokesperson for the company commented that doing nothing will see some drivers charged "for the privilege".
"Most insurers concentrate on discounts to attract new customers and forget all about the customers who have been loyal and stay with the same company year after year," he added.