It’s now peak auto-renewal season - Christmas, if you’re a car insurer.
That's because nearly 6million drivers could be losing out on at least £113 a year because they stuck with their car insurance provider.
In fact, one in four drivers didn’t check a single quote from another provider when their policy was up for renewal, according to the report from comparison site MoneySuperMarket.
The report revealed some common traps:
- You’re signed up automatically: When you enter your credit or debit card details, you sign up to make a further payment for year after year. There is often no way of opting in or out of auto-renewal.
- Renewal notes are confusing: They often don’t include last year’s premium price, so it’s hard for you to know you’re being charged more. Some insurers even appear to select which customers they will inform of last year’s premium and which ones they’ll leave in the dark.
- The language is soothing: Car insurers often use phrases like ‘Happy Anniversary’ or ‘You do not need to do anything’. It’s designed to encourage you to sit back and pay a higher price without noticing.
- It’s difficult to cancel: Some providers charge cancellation fees or tell you to call expensive premium rate telephone numbers.
A separate study by GoCompare found more than one in four of us feel pressurised into sticking with our insurer and a similar proportion think insurance companies are underhand in the way they renew policies.
This article was independently written by Bought By Many. We were not paid to write it, but we may receive commission for sales that result from you clicking on a link to one of our partners.