Rip-off car insurers are charging loyal drivers £62 a year for renewing their car insurance while offering nothing in return.
Drivers who shopped around paid an average £343 a year for their cover – while those renewing with the same insurer paid £405, an average 18% for no extra benefits.
The figures come from research by consumer champion Which? The findings showed eight out of 10 drivers who shopped around paid less than the renewal quote and 3% found a deal that was cheaper than they had paid the year before.
The best advice for drivers looking for cheap car insurance is to shop around.
Many insurers will cut their renewal premiums if they are shown cheaper quotes from rival firms.
Some firms expect to haggle over renewals and automatically chop £15 off the bill if drivers phone them to negotiate a better price.
However, the consumer group found 70% of insurers would not budge on their renewal quote.
The group’s insurance analyst Paul Davies said: “The overwhelming feedback we received from panel members was that they were tired of playing the renewal ‘game’ and wanted to know why insurers couldn’t just reward customers who make a commitment to stay with them.
“Drivers don’t always want to switch company each year, but our members recognised that this is almost inevitable to avoid spiralling prices.”
The best way to shop around for a cheap car insurance quote is to enter details in to a comparison web site or speak to a broker – effectively they do the same thing.
Don’t forget to try more than one comparison as some insurance companies are not on all the sites – while others are not on any.
Also make sure a broker is not tied to a specific insurer or group of insurers – the best deal will come from an independent who can scan the whole of the market for a cheap car insurance deal.