MILLIONS of drivers have been warned that a common car insurance mistake could be costing them hundreds every year.
New research from Go.Compare found that one in 10 Brits have missed a key deadline, often resulting in a hefty bill.
GettyResearch from Go.Compare found that 10% of drivers are allowing their insurance to auto-renew[/caption]
ITVPersonal finance experts like Martin Lewis have warned against the practice[/caption]
According to the survey of 1500 motorists, weighted to reflect the national population, over 4 million car owners are still allowing their policy to automatically renew at the end of its term.
As the name suggests, this is where you allow your insurance provider to place you onto a new contract without shopping around to find cheaper rates.
The study found that London had the highest proportion of auto-renewals at 16%, while the East Midlands had the lowest at just 4%.
Respondents also shared a number of reasons that led to them auto-renewing.
For example, 23% cited loyalty to their existing insurer having previously received good service, while 40% said it was because their provider was the cheapest the last time they renewed.
However, money saving experts, including Martin Lewis, have consistently recommended against the practice.
Amid a cost of living crisis and with inflation still high, the climate of increasing prices means that an auto-renewal would likely see you pay more.
And when you auto-renew, you lose any negotiating power with your insurer, effectively allowing them to put you on any tariff they wish.
This was seemingly backed up by Go.Compare’s data, with 80% of those surveyed reporting increased premiums, even when they didn’t auto-renew.
To get the best deal, the brand’s insurance specialists recommended shopping around as much as possible.
Comparison sites are a great way to weigh up different options, while you can also haggle internally with your existing insurer to bring down costs without risking your no-claims discount.
According to Martin Lewis, the cheapest time to buy car insurance is between 20 and 26 days ahead of your renewal date, with renewing on the day an average of £400 a year more expensive.
He explained: “It’s important to understand with insurance, just like with comedy… timing is everything.
“Of course, the question is ‘why?’
Eight tips to save money on your insurance
According to SheTalksCars
Buy in advance – 23 to 26 days before you need cover is the sweet spot
Add a named driver – even a learner can knock money off
Try different parking places – a garage isn’t always cheaper
Choose the right job title – make sure they are always accurate
Shop around – comparison websites are your friend
Pick a multi-car policy – share it with others in your household
Add your licence number
Pay annually rather than monthly – save yourself interest payments
“We go back to risk. The type of people who leave getting quotes to the last minute before their renewal is the type of people who are high risk when it comes to home and car insurance and make more claims.
“So, what you want to do is you’re effectively by doing this on the right timing, you’re saying to the insurer: ‘Hi, I’m not going to be making a claim over the next couple of years, so you can trust me and charge me a lower price.’”
It comes after one driver was enraged when the AA left his swish BMW parked up at a service station for two days, with the keys left on the tyre.
Meanwhile, an expert revealed the five 80s hatchback brands that are surging in value to become worth thousands.