Failing to change car insurance providers could mean drivers are overpaying by £1,400 over 10 years
New study finds those who stick with one provider rather than changing lose money over time
A new study by the research agency Consumer Intelligence has discovered that those motorists who fail to change car insurance providers are overpaying by around £1,400 over a 10 year period compared to those drivers who take the time to shop around for the best price.
Loyalty to one insurance provider it seems, doesn’t pay off in the long run – drivers who look around for the best deal tend to be the ones better off.
The research agency surveyed 9,000 motorists and found that those drivers who stayed with the same car insurer after the first year end up losing around £63 compared to motorists who take the time to shop around and change providers.
Sticking with the same provider year after year could add up to more than you think, costing loyal customers around £1,400 over a 10 year period.
New rules were introduced in April by the Financial Conduct Authority (FCA) that insists insurers show their current price and renewal price for drivers.
According to the FCA, their new laws will help motorists and other consumers save over £100million by informing them of potential price increases.
Assistant Director and Head of Conduct Regulation at The Association of British Insurers, James Bridge, says the news from the FCA was most welcome.
“The recent changes made by the industry regulator, which we had long called for, and which include showing both the existing and new premium on renewal notices, should make it very clear whether people are being asked to pay more,” said Mr Bridge.
Mr Bridge added that the cheapest policy may not always be the best for some motorists and suggests that drivers buy the best policy for their particular needs rather than simply choosing the cheapest one they can find, whether that be on a comparison website or one that is recommended to them.
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