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Drivers that auto-renew insurance see an average price increase of £42

Georgia Petrie

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Georgia Petrie

Toy car insurance
  • Forty-one per cent of drivers let their car insurance policy renew automatically
  • One in 10 drivers are hit with a premium increase between £51 and £75 when they allow their policy to auto-renew
  • Drivers urged to plan their insurance renewals in advance in order to get the best deal on car cover

Drivers that auto-renew their car insurance premium see an average price increase of £42, according to MoneySuperMarket. The price comparison site found 41% of drivers let their car insurance policy renew automatically. Drivers that did so saw their premiums increase by £42 on average, with around one in 10 drivers being hit with an increase between £51 and £75.

In the poll of 2000 UK adults, MoneySuperMarket found that one in five drivers that auto-renewed their insurance policy saw jumps between £26 and £50, while nearly one in 10 (9 per cent) saw rises between £51 and £75. An additional eight per cent were charged between £76 and £100 more than the previous year.

Eight per cent of drivers allow their insurance to renew automatically without shopping around for a cheaper deal, with a fifth (20%) staying with their existing provider for ease. A tenth (12%) believe changing car insurance provider is too much time or effort, and a further 13% don’t believe there are significant savings to be made.

The Financial Conduct Authority’s (FCA) transparency in insurance renewals rules that came into force in 2017 are intended to encourage drivers to shop around by highlighting the previous year’s policy price against their renewal price. Despite this, half (51%) of drivers don’t recall seeing these notifications. Of those that did see the notifications, a third (31%) said that it didn’t encourage them to shop around.

Kate Devine, car insurance expert at MoneySuperMarket, commented: “If your policy is coming up for renewal, you should always shop around to see what deals are on the market - a new deal on your car insurance is very easy to find online and could save you up to £218.”

Last month, a MoneySuperMarket study also discovered that drivers who renew at the last moment overpay by an average of £200, with car insurance premiums rising by 17% when the policy reaches its final 24 hours.

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