Car Insurance: 6m drivers steer to insurance discounts
6m switch car insurance company
Wednesday, 07 May 2008 12:01
Rising car insurance premiums have led 6.4 million Brits to switch insurers in the last six months.
The average annual fully comprehensive policy now costs £682, according to the AA, but companies are offering sizable discounts for new customers.
With such discounts on offer, 14 per cent of drivers have ditched their insurer in the last six months, claims research by MoneyExpert.com.
Sean Gardner at MoneyExpert, said: “When it comes to car insurance, loyalty does not pay.
"The only way that car insurance companies can offer discounts and incentives to attract new business is by passing on the extra cost to their existing customers."
He added: “Have you ever wondered why your renewal notice always seems to rise slightly compared to the competitive quote you got initially? It’s because you’re paying for someone else’s cheap deal."
Middle aged drivers – those aged 35 to 44 – are most likely to switch insurance companies, while men are slightly more likely to change providers.
Mr Gardner added: “While disposable income is being squeezed people need to make their money work as hard as possible for them.
"You could save up to 30 per cent off your car insurance by shopping around and that’s got to be worth having."
Daniel Barnes