Last year more than a quarter of all drivers changed their car insurance provider, according to new figures from comparison site GoCompare.
The number of people in the UK who switched their car insurance increased from 22% in 2016 to 27% in 2017. The increase in switching activity has been largely attributed to rising premiums in the car insurance market, which reached record levels last year and are believed to have prompted more drivers to investigate their options.
Average motor premiums rose by 9% in 2017, according to the Association of British Insurers (ABI), adding an extra £40 to the average motor insurance policy.
In a wide-ranging survey, the report revealed that 47% of people switched at least one of the top 10 financial products in the last 12 months, with car, home insurance and household utilities the most likely to be switched.
Matt Oliver from GoCompare commented: “In 2017 car insurance premiums hit a record high and the cost of home cover also increased, and it seems this was the cue for many people to shop around and switch to a better deal. We know from our own research that nothing makes loyal customers head for the exit quicker than an insurance renewal letter telling them their premium is going up.
“Customers have woken up to the fact that, where insurance is concerned, loyalty doesn’t pay. Providers typically use their best deals to attract new customers, so often the only option for existing customers is to go elsewhere.
GoCompare’s top five tips to help people get the best deals
- Plan ahead in order to give yourself time to review your arrangements and make sure that you’re still getting a good deal, keep a diary note of key dates including renewal dates, expiry dates of fixed rates or tariffs, the end of introductory offers.
- Never accept an insurance renewal or energy tariff change without first checking that the new price you are being offered is competitive.
- As well as comparing prices and headline rates, check the small print of the deal you are being offered. Make sure that you are making like-for-like comparisons and understand all the charges, any penalties, exclusions and terms and conditions you will be required to meet, and that the product is right for you.
- If you’ve signed up for a product with an attractive introductory rate, make sure you review the arrangement before the end of the offer period otherwise you could end up paying more in the long run.
- Use a comparison website – they provide quick and up-to-date information on a wide range of financial products and services.