Drivers could lose an estimated £677 million every year
Drivers could lose an estimated £677 million every year because they forget to compare policies when their car insurance is up for renewal, according to new data.
Car insurance errors could cost millions of drivers £362 a year, it has been warned. Drivers could lose an estimated £677 million every year because they forget to compare policies when their car insurance is up for renewal, according to new data.
This forgetfulness results in their policy auto-renewing, which often doesn’t offer the best deal – meaning many could be paying significantly more for insurance than they need to.
The figures come from the latest research by Go.Compare’s new personal finance app Renewal. They reveal that, across all types of insurance, 8% of billpayers forget about an insurance renewal until it’s too late to compare every year.
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This means insurance renewals could be forgotten about by an estimated 4.3 million adults annually across the UK.
Of those who admitted to forgetting about a renewal, more than two in five (43%) said it was their car insurance that they allowed to auto-renew.
Therefore, approximately 1.8 million drivers could be paying more than necessary by missing the chance to compare.
As a quick comparison could save drivers up to £362 on their policy, millions could be being lost to this mistake nationwide each year.
Combined home insurance policies were the second most commonly forgotten about renewal – just under a third (31%) admitted that they only remembered about this once it was too late.
This was closely followed by pet insurance (28%) home buildings insurance (26%) and contents insurance (23%).
Matthew Sanders, money spokesperson at Go.Compare, which powers Renewal, said: “Allowing your policy to auto-renew can be convenient, but it can also mean that you’re missing out on the best price for your insurance, as there are usually better deals available.
“Comparing policies when your cover is nearing its end is a great opportunity to cut costs, yet many forget to keep track of when their policy is due to renew, and lose out on this chance as a result.
“For this reason, it’s essential that you make a note of when your policies are due to be renewed so that you have a chance to shop around first.
“When you have multiple insurance types to keep track of, this can be tricky – so using an app like Renewal can save you a lot of time and stress.
“The Renewal app is a safe, convenient space to store all your insurance info in case you need it – and it also sends you reminders, so you know when it’s time to renew and when you’re likely to get the best price.”
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.