Loyalty does not pay if you are renewing car insurance or home cover because insurance firms have no obligation to offer the best price.
Many hope customers will just sign up for another year without checking the price at a cost of wasted million to drivers and home owners.
Now, consumer champion Which? is calling for insurance companies to clean up their act by offering their best deal on renewals.
Rather than have to hunt around for a deal on comparison sites or by phoning insurance firms and brokers, Which? wants firms to redesign renewal notices to give the previous year’s premium and the percentage change.
A Which? Spokesman said: “Insurers who do not offer a good deal to consumers at renewal are attempting to exploit customer inertia rather than reward loyalty.
“We want renewal documents to show both the new premium and last year’s premium so that consumers see how much their premium might have increased.
“It is worth taking your insurer to task even when there has been only a modest change in the premium.
“We suggest that people always challenge the renewal quote and check whether the cover still meets their needs.”
Most insurers work on the principle of caveat emptor or buyer beware and expect customers to shop around for the best car or home insurance deal.
The basic unfairness is insurance firms slash prices to attract new business, but treat existing customers with disdain and disrespect by upping their premiums without reason whenever possible.
The fact is cheap quotes for car insurance are available for switchers, but a driver with the same history on the roads and background may have to pay hundreds of pounds more for the same cover without any justification.
The AA claims the cost of car insurance can be slashed by an average £530 by shopping around for comprehensive cover.