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Car insurance customers who don’t shop around could end up paying 'more money'


They warned drivers who automatically renew their insurance each year could end up paying “more money”. New analysis by the group found car insurance prices have dropped to the lowest level in six years due to the effects of the pandemic.

She said: “It’s been just over a year since we went into lockdown for the first time and this triggered a lot of changes in how we’re using our cars.

“And this is a change that could be here to stay for the foreseeable future, so it only seems right that our car insurance costs are cheaper to reflect this.

“What we are seeing is the biggest drop in prices in almost six years.

“But it’s important to remember that these lower prices are only benefiting those who shop around.

“It’s clear from our research that automatically renewing could in fact cost you more money.

“Loyalty clearly doesn’t pay. But if the increase is small, or you are fortunate to see your renewal price drop, please don’t settle for this as there will be an insurer out there willing to offer a better price.

According to Confused.com, one in 10 respondents claim the companies automatically renewed their insurance policy on their behalf.

Confused.com said this makes it difficult for motorists to opt out of their agreement and find a better deal.

This is currently being investigated by the Financial Conduct Authority (FCA) which is considering changes to make it easier for customers to benefit from discounts.

The updates could stop insurers from calculating a price based on whether a driver is a new customer or an existing one.

The FCA said it would also be looking at ways to stop automatic renewal across insurance firms when the project was announced last year.

Christopher Woolard, Interim Chief Executive of the FCA said the changes would ensure firms could focus on providing “fair value” to customers.

He said: “We are consulting on a radical package that would ensure firms cannot charge renewing customers more than new customers in future, and put an end to the very high prices paid by some long-standing customers.

“The package would also ensure that firms focus on providing fair value to all their customers. We welcome feedback on the proposals.”


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