Millions of motorists are overpaying on their car insurance by simply forgetting to switch provider every year. According to new research from comparethemarket.com, 16% of motorists – equating to over six million people nationwide – admit that changing car insurance providers when their policy comes to an end simply slips their minds. The annual cost in lost savings for these drivers totals £675 million every year.
The overspend is concerning for motorists as many think costs will increase; nearly a third (31%) currently struggle to afford premiums, but 68% expect the price of insurance to increase in the next three years.
The figure is even greater for young drivers. A similar number of motorists aged between 18 and 24 (15%) say they often forget to switch insurers. However, younger demographics pay disproportionately higher premiums as they are considered higher risk. The average annual motor insurance cost for this age group is £1,220, however, by remembering to switch, young drivers can save an average of £226.
Many motorists don’t switch insurance provider because they see it as a chore; 43% agree switching is a hassle, a figure which rises to 55% amongst 18-24 year olds. A similar proportion (40%) say they would value a tool which makes switching easier.
Dan Hutson, Head of Motor Insurance at comparethemarket.com, said “Car insurance is a significant expense for many drivers and the cost of cover has risen steeply over the past few years. Nearly a third of motorists say that they struggle to afford the cost of insurance. The most effective way to avoid price hikes is to compare the market for the most competitive provider but taking the time to switch is something many people just forget to do.”