Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • February 2017
02

Drivers waste £1.5bn per year auto-renewing car insurance

Open-access content Tuesday 21st February 2017 — updated 5.50pm, Wednesday 29th April 2020

UK motorists are collectively wasting an estimated £1.5bn each year by allowing their car insurance to automatically renew without checking if they are getting a good deal, according to research by Gocompare.com.

2

It shows that 5.25 million people fall into the auto-renewal trap annually, with drivers aged between 18 and 24 the most apathetic, despite potentially having the most to gain.

It was also found that 41% do this out of loyalty to their insurer, with 32% of drivers saying that they have been with their current provider for three years or more, while 22% have done so for at least four.

Gocompare.com relationship manager, Matt Oliver, said: "With car premiums hitting record highs, it's now more important than ever to make sure you're not getting a raw deal.

"At renewal, insurers will offer to continue your cover without you having to lift a finger. What they're not so good at telling you is that by shopping around you may be able to find the same cover for less.

"Loyalty, when it comes to car insurance, generally doesn't pay, the best deals nearly always go to new customers."

The research involved surveying 2,000 randomly selected British adults earlier this month, with 29% of respondents saying that they do not search for better deals when renewing their car insurance because they find it confusing and don't have the confidence to switch.

In addition, only 29% said they read renewal information thoroughly, a third believe it should be easier to understand, and 34% do not trust insurers who tell them they are paying too much for cover.

Oliver continued: "Luckily, fighting back is simple. Use your renewal letter as a prompt to take action. As soon as it arrives, read it and compare the price and cover you are being offered against last year's documents and challenge yourself to beat what you're being offered.

"Consider any changes you might need to make, and look at similar policies on a comparison site to see if you can make any savings.

"If you decide to switch you'll need to tell your current provider. Most car insurance policies automatically renew unless you notify the insurer to the contrary, if you don't stop the auto-renewal you could be faced with a hefty cancellation charge."

This article appeared in our February 2017 issue of The Actuary.
Click here to view this issue
Filed in
02

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Pensions Actuarial Analyst

London, Midlands, Scotland
£Market Competitive
Reference
143788

Senior Manager/Director level roles - Life insurance

Stirling
Generous salary with excellent bonus and benefits
Reference
143787

Reinsurance Pricing Actuary

London (Central)
£60-90K depending on experience
Reference
143786
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ