Motorists who believe that by leaving their car insurance to reset itself the following year will gain them some extra money are only kidding themselves. According to a new research, car insurance premiums are now 94 percent more expensive than they were only 3 years ago.
Gocompare.com reveals the fact that 27% of motorists believe that their policy will be the same as it was the year before. This is not the case as insurers don’t actually give any discounts or rewards for loyalty.
John Miles from Gocompare.com revealed just how much car insurance premiums have risen so far. He said: “In the last three years, the average car insurance premium has risen to £1,332 from £682, a whopping 94% increase.”
“This trend is likely to continue for the foreseeable future, as insurers get to grips with rising claims costs and the recent European Court of Justice ruling that prohibits insurers from calculating premiums based on gender from the end of 2012,” he added.
The same research reveals that 39 percent of motorists did not chose to sign with another insurer and decided to keep the same policy for more than three years, while 45 percent of them managed to check their renewed premium. Only 24 percent of them did actually read all the documents attentively.
Brits believe that switching to a new car insurer is too much of a hassle. About 16 percent are victims of commodity while 13 percent didn’t believe that signing with another insurer is of any gain to them.
As most premiums automatically renew themselves each year, Brits prefer not to do anything and let things take their normal course. This proves to be not the best course of action after all.