317m GBP Car Insurance Renewals Bill Hits Motorists Hard

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Feb 02, 2011, 10:00 ET

CHESTER, England, Feb. 2, 2011 /PRNewswire/ -- Research by moneysupermarket.com shows UK motorists, who delay renewing their car insurance are adding nearly 317 million GBP a year collectively* to the cost of their cover.

The analysis of over 21 million car insurance quotes by the UK's leading price comparison site found car insurance premiums have increased by 31 per cent on average, over the past year,** that is 44p added to every policy, each day. "Drivers really need to act as quickly as possible when they know their car insurance is about to expire," said Peter Harrison, car insurance expert at moneysupermarket.com. "Our research shows that every day they delay shopping around and looking for the best deal adds extra cost to their premium price. With so many factors making the cost of motoring much less affordable for a large number of people, every penny counts and being quick off the mark can really make all the difference."

The rising cost of car insurance seems to be showing no sign of slowing as personal injury claims, uninsured drivers and fraud are still major problems in the insurance industry. This is backed up by Peter Harrison who said "We still haven't seen a slowdown in the rising costs of premiums and unfortunately we don't know when prices will stabilise. The 31 per cent increase we have identified will impact many consumers when they are already finding it hard to pay their way. The best advice is to shop around and compare policies to ensure that you get good value for money and the policy you need at the best possible price. It really does pay to be proactive and not wait for your renewal notification. Renewing with your existing provider may not be the best option. Shopping around for the best deal on car insurance can save on average 280 GBP through moneysupermarket.com."

With escalating fuel costs, every motorist is feeling the pinch with a large proportion of drivers changing their driving habits and some not getting behind the wheel at all.*** It is no wonder they are taking their time, shopping around for the best deal when it comes to their car insurance as a policy that cost 500 GBP in January 2010 will now cost 655 GBP, a huge 155 GBP increase.****

The message is clear, motorists who receive their car insurance renewal are being urged to compare prices immediately and make a decision on a policy as soon as possible. By leaving it till the last minute motorists will see an average 13.20 GBP rise in the cost of their car insurance premium.

Notes to editors:

* 24million private car insurance policies sold annually in the UK. Source ABI

13.20 GBP x 24,000.000 = 316,800,000

** Over the past year car insurance quotes have increased on average by 31%.

The average moneysupermarket.com quote has gone from 519 GBP to 680 GBP (44p per day).

This figure was calculated using 21,370,762 enquiries made between 11/01/2010 and 13/01/2011

***January 2011

Are record fuel prices forcing you to change your driving habits?

Yes – I no longer drive a car because the associated costs are too high - 4.9%
Yes – I've reduced my car usage - 62.1%
No – I can still just about afford it - 17.2%
No – I've not changed my driving habits - 15.8%

Total votes: 3198

****Percentage increase affect on premiums


Starting premium	End Premium	Difference	Percentage increase
100.00 GBP	131.00 GBP	31.00 GBP	31%
200.00 GBP	262.00 GBP	62.00 GBP	31%
300.00 GBP	393.00 GBP	93.00 GBP	31%
400.00 GBP	524.00 GBP	124.00 GBP	31%
500.00 GBP	655.00 GBP	155.00 GBP	31%
600.00 GBP	786.00 GBP	186.00 GBP	31%
700.00 GBP	917.00 GBP	217.00 GBP	31%
800.00 GBP	1,048.00 GBP	248.00 GBP	31%
900.00 GBP	1,179.00 GBP	279.00 GBP	31%
1,000.00 GBP	1,310.00 GBP	310.00 GBP	31%
1,100.00 GBP	1,441.00 GBP	341.00 GBP	31%
1,200.00 GBP	1,572.00 GBP	372.00 GBP	31%
1,300.00 GBP	1,703.00 GBP	403.00 GBP	31%
1,400.00 GBP	1,834.00 GBP	434.00 GBP	31%
1,500.00 GBP	1,965.00 GBP	465.00 GBP	31%
1,600.00 GBP	2,096.00 GBP	496.00 GBP	31%
1,700.00 GBP	2,227.00 GBP	527.00 GBP	31%
1,800.00 GBP	2,358.00 GBP	558.00 GBP	31%
1,900.00 GBP	2,489.00 GBP	589.00 GBP	31%
2,000.00 GBP	2,620.00 GBP	620.00 GBP	31%
2,100.00 GBP	2,751.00 GBP	651.00 GBP	31%
2,200.00 GBP	2,882.00 GBP	682.00 GBP	31%
2,300.00 GBP	3,013.00 GBP	713.00 GBP	31%
2,400.00 GBP	3,144.00 GBP	744.00 GBP	31%
2,500.00 GBP	3,275.00 GBP	775.00 GBP	31%
2,600.00 GBP	3,406.00 GBP	806.00 GBP	31%
2,700.00 GBP	3,537.00 GBP	837.00 GBP	31%
2,800.00 GBP	3,668.00 GBP	868.00 GBP	31%
2,900.00 GBP	3,799.00 GBP	899.00 GBP	31%
3,000.00 GBP	3,930.00 GBP	930.00 GBP	31%