Motorists are spurning the chance to save money on car insurance at a time when UK households have seen a huge drop in disposable incomes.
Research by MoneySupermarket suggests that nearly three million motorists automatically accept their car insurance renewal quote from their existing provider because they can’t be bothered to search the market for a better deal and switch. Eight million motorists eventually decide to stick with their existing provider each year.
The news comes in the same week that a report by investment bank Morgan Stanley which says that rising fuel, food, energy and mortgage costs combined with low wage increases will make each household in the UK £200 a year worse off on average.
However, by searching for a better deal on car insurance and switching, many motorists could save that amount in just one transaction. MoneySupermarket says that British motorists are wasting an average of £404 each by not finding a better deal.
With the new ‘62’ car plate released later this week many people will be considering purchasing a new car which will result in even higher car insurance costs.
Pete Harrison, car insurance expert at MoneySupermarket, said: "With many families returning home from a well-deserved summer break, household budgets are likely to be strained, and its important people don't just accept the renewal price from their car insurance provider.
"Our research shows the importance of shopping around, and motorists could find they can save themselves a staggering £404 by doing so. There is no excuse for apathy when it comes to renewing your car insurance policy."
Over 55’s are the most likely to stick with their existing provider, with the average policyholder remaining with the same company for just over three years. 18-34’s are the most likely to switch, staying with the same company for just under two years.
Regionally, people from Wales are the smartest about comparing car insurance deals and switching. On average they stay with their existing supplier for just over two years.
Pete Harrison continued: "It takes about five minutes to check if there is a cheaper policy out there to suit your individual needs."