New study reveals millions still overpaying for car insurance

By Charlotte Whyatt - Fri 20th Sep 2019
New study reveals millions still overpaying for car insurance

By forgetting to shop around for a better deal, millions of motorists are needlessly overpaying for their car insurance.

A new study from Compare the Market saw that 16% of UK drivers, which equates to a staggering six million people nationwide, admitted they forgot to switch to another provider once their policy had ended.

Collectively they claim, this adds up to a loss of around £675 million per year.

The difference between the cheapest average car insurance premium and the average premium is currently £110 according to the study.

The most common reason participants gave for not switching was because they see it as to much of a “chore.”

43% of those in the 24 and over category gave this response when asked, a figure which rose to 55% in the 18-24 age bracket.

Another 40% of all age groups said they would love a tool which made switching much simpler.

"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,” said Dan Hutson, head of motor insurance at Compare the Market.

"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."

Source: This is Money