Loyalty doesn’t pay when it comes to car insurance, with motorists typically paying an extra £270 a year if they remain with one provider for 2.6 years, according to new research from moneysupermarket.com.

The price comparison website estimates that a collective £1.7 billion is wasted annually by the 19% of drivers who automatically renew with their existing insurer.

Of these, 11% don’t think they can find a better deal, and 8% can’t be bothered to see if they can save money.

The research also suggests that drivers aged over 55 are the most lethargic, with 21% failing to compare car insurance premiums at renewal.

Moneysupermarket estimates that car insurance premiums rose by 31% in 2010 and spokesman, Peter Harrison, says: “It is more important than ever at the moment to make sure you get the best deal on cover, especially when escalating fuel prices and the rising cost of insurance cover is hitting motorists hard.”

Mr Harrison adds: “Insurers count on customer apathy to reap the profits, so it is alarming so many motorists are prepared to waste their hard-earned cash by not looking for a better deal.”

 

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