More drivers than ever are switching car insurers

- Advertisement -

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

  1. 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.
  2. Never accept an insurance renewal or energy tariff change without first checking that the new price you are being offered is competitive.
  3. 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.
  4. 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.
  5. Use a comparison website – they provide quick and up-to-date information on a wide range of financial products and services.
- Advertisement -
Michael Dalton
Michael Dalton
Michael graduated from university in 2016 with a degree in Human, Social, and Political Sciences. He contributes to both The Car Expert and The Van Expert.

Latest Expert Advice

Driving test change to boost accessibility

Video clips are to replace written scenarios in UK driving tests to make them more accessible.

Personal Contract Purchase: the PCP explained

The PCP (personal contract purchase) is the most popular type of car finance. This guide tells you everything you need to know about PCP car finance.

Latest Expert Ratings

Nissan Juke

The Nissan Juke has received widespread praise for its smoother styling compared to the divisive original, as well as being much better to drive.

Toyota Camry

The Toyota Camry has received generally good media reviews, with praise for being a comfortable, quiet, efficient and practical large saloon.

All-new Hyundai i20 breaks cover

Hyundai has pulled back the covers on the new i20, with the supermini the first car to sport the firm’s ‘Sensuous Sportiness’ approach to design.

Refreshed Honda Civic Type R adds hardcore and stealthier versions

Honda has overhauled its Civic Type R, introducing a track-focused limited edition version along with a more subdued Sport Line option.

Car finance lender forced to pay customers £30 million in compensation

Car finance lender Moneybarn has also been fined almost £3 million by the Financial Conduct Authority (FCA) after failing to help vulnerable customers.

UK used car market holds steady in 2019

Some 7.9 million used cars changed hands during the year, almost exactly the same as the previous year

More from The Car Expert

Expert Advice

Award-winning, independent and impartial advice on buying, financing, owning and running a car

Expert Ratings

We analyse and aggregate dozens of media reviews for each new car into an overall Expert Rating

Expert News

All the most important new car launches, model updates, car reviews and industry news

Expert Partners

Our new space for commercial partners to bring you special offers on their products and services

What are your thoughts? Let us know below.