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
  • Sections
  • News

UK motorists overspend £830m on insurance premiums

Open-access content Wednesday 23rd February 2022
UK motorists overspend £830m on insurance premiums

A total of 17 million UK drivers let their car insurance renew automatically last year, overpaying a collective £830m as a result, analysis by MoneySuperMarket has uncovered.

The research found that 52% of motorists let their car insurance auto-renew in 2021, up 27% from the previous year. Premiums increased by £49 on average – up 17% from 2020 when drivers saw a typical rise of £42. 

A survey of those who renewed their car insurance found that a quarter shopped around, but stayed with their existing provider for ease – up 20% on last year. 

Over a tenth said that changing car insurance provider takes “too much time or effort”, and nearly one in five thought that there were no significant savings to be made.

This comes after the Financial Conduct Authority (FCA) introduced new rules at the start of 2022 intended to stop insurance companies hiking their prices every year.

“Last year more drivers renewed their car insurance with their existing provider than did not,” said Sara Newell, car insurance expert at MoneySuperMarket.

“With motorists reporting average premium increases of £49, this means that collectively, UK drivers overspent on their premiums to the tune of an estimated £830m.

“While we have seen the introduction of the FCA’s new rules on price walking – which are intended to level the playing field for consumers – it’s important that drivers don’t rely on such measures to reduce their premiums.”

Regionally, drivers in London reported the biggest average rises to their premiums at £79, followed by those in Northern Ireland and the West Midlands, on £61 and £60, respectively. Welsh drivers saw their premiums increase the least.

Despite FCA rules intended to ensure providers highlight a customer’s previous year’s premium price against their renewal price, 48% of drivers did not recall seeing these notifications. 

Of the 52% that did, 72% said that they did not encourage them to shop around.

“We’ll monitor the impact of the FCA’s new measures over the coming months, but the fact remains that shopping around is always going to be the most effective way of keeping your costs down,” Newell added.

 

Image credit: iStock

Author: Chris Seekings

Filed in
News
Topics
General Insurance

You might also like...

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

Latest Jobs

Environmental, Social and Governance- GI Actuary

England, London
£70000 - £170000 per annum
Reference
145888

Calling All Australian Actuaries

England, London
£50000 - £120000 per annum
Reference
145887

Calling all GI Actuaries looking to move into contracting

England, London
£700 - £1000 per day
Reference
145886
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