Car insurance customers miss out on savings as many policies are renewed ‘unknowingly’
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Car insurance policyholders are not aware that some providers are “within their rights” to automatically renew your cover. This means it is vital for road users to be “proactive” and ensure they keep an eye on their end date before an agreement runs over, according to Freddy Macnamara at insurance company Cuvva.
The car insurance expert warns that a recent survey conducted by Cuvva reveals almost one in ten drovers policies were auto-renewed without drivers even knowing.
He urges drivers to ensure they are always aware of their agreements start and end dates as well as details on the cancellation period.
He also revealed that many road users were simply “not aware” that some firms offered a cooling-off period where drivers could change their mind on an agreement.
This could be vital for any road users that may have found a similar or better agreement at a cheaper price days after signing up.
Mr Macnamara said: “Almost one in ten (7 percent) of drivers’ policies were auto-renewed unknowingly, our survey shows.
“It’s important to be aware of the exact start and end date of your policy – and the cancellation period, so you can get in touch with your provider ahead of these dates if you want to switch.
“Many drivers also aren’t aware that providers offer a ‘cooling-off period’ which gives you two full weeks to change your mind after signing up to a new policy – so be sure to always bear this in mind before committing to an agreement.
“Unfortunately, insurance providers are usually within their rights to renew your policy automatically, without telling you first – so it’s important to be proactive.”
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The latest analysis from Compare the Market has revealed that drivers could save a massive £425.13 if they switch car insurance provider three weeks before the renewal date.
Drivers who switch at this point could pay an average of just £535.61 per year for cover compared to over £960 if they find a policy on the day of renewal.
However, thousands of road users miss this key window and pay more than they need to for cover.
Nearly a quarter for road users wait until the day before a policy is due for renewal before shopping around when the deals will be less than impressive.
Compare the Market warns that those aged between 25 and 29 can make the highest savings by switching provider.
They say that motorists in this age group could save over £483 on average if they switch 21 days before a policy ends.
The average cost of an agreement would fall from over £1,100 to just £676 in major savings at a time of financial uncertainty for many.
Go Compare analysis has revealed that up to 30 percent of road users said they decided to stick with their same provider for loyalty.
This is despite newer customers often receiving better deals compared to those that have stayed with the same firm.
A massive 22 percent of those surveyed said they lacked the confidence to switch insurance providers.
Meanwhile, 10 percent claimed that switching cover was too much hassle despite the cost savings drivers can clearly make.
But in a shocking discovery, only 35 percent said they consciously looked at what they paid for cover in previous years.
This means thousands of road users may not even be aware of paying higher charges year-on-year.
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