A recent analysis reveals that almost half of UK drivers allow their car insurance policies to renew automatically, resulting in a collective loss of £560 million each year. In 2024, 47 percent of motorists let their insurance continue without making changes—a slight improvement from 52 percent in 2021. Despite new regulations aimed at protecting consumers, the average cost of car insurance policies has continued to rise.
On average, drivers paid £82 more for their policies year-on-year, even after the Financial Conduct Authority (FCA) introduced measures to prevent insurers from charging loyal customers higher prices than new ones.
The FCA’s rules, implemented in 2022, require insurance companies to display the previous year’s premium alongside renewal quotes. However, almost half of surveyed drivers admitted they did not notice this information when renewing. This oversight means many motorists may be missing opportunities to save money. Chris Richards, a car insurance expert at SimplyQuote, explained, “The FCA reforms have stopped the worst renewal mark-ups, but they can’t stop people ignoring their renewal emails.”
Shopping Around Remains Limited Despite Potential Savings
While some drivers are proactive about their insurance costs, most remain loyal to their current providers. About 30 percent of UK motorists reported shopping around at renewal time but ultimately chose to stay with their existing insurer. Another 15 percent said that switching insurers was too much effort, and 20 percent believed there were no savings to be gained by changing providers.
Industry analysts expect only modest reductions in premiums this year and do not foresee significant drops in prices. The average cost for a comprehensive policy is now £635, down slightly from a peak of £650 in late 2024. Richards emphasized that drivers should not assume the system will save them money automatically. “The only real protection against overpaying is taking five minutes to check your renewal quote,” he advised. “If you haven’t done that, you’re almost certainly paying too much.” The message is clear: taking a moment to review your car insurance could make a significant difference in your annual expenses.
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