If you don’t shop around for car insurance, it could cost you £1,400 over 10 years

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Drivers who stay with the same car insurer for a decade will be out of pocket by £1,400, according to new research.

An audit of 9,000 motorists by research agency Consumer Intelligence found that loyalty costs with motorists who failed to shop around, losing on average £63 in the first year.


And customers who switch after a longer period with the same insurer stand to make even bigger savings, with drivers who've been with the same insurer for more than nine years saving £116.

The data, based on customers switching in the past two years, highlights how loyalty can cost and underlines the need to shop around each year.

And it's not just motorists who are suffering, the data shows householders who don't switch home insurance could be overpaying by £37 on average after one year.

New Financial Conduct Authority (FCA) rules introduced this April are making it easier to compare prices – insurers have to include the previous year's premium when inviting customers to renew.

Ian Hughes, Chief Executive of Consumer Intelligence said:
"It is always the best policy to shop around at renewal and make sure you have the best cover at the best price. Those that do so are better off over time."

Some 95% of consumers support the FCA's new rules and most said they expected it to change insurance brands' behaviour to give better prices to loyal customers. Currently 89 per cent of consumers believe insurance companies give their best prices to new customers, and 52 per cent think that having to publish the previous year's price next to the renewal price will prompt them to give better prices to loyal customers instead.

Ian Hughes, Chief Executive of Consumer Intelligence said:
"It is always the best policy to shop around at renewal and make sure you have the best cover at the best price. Those that do so are better off over time."

By Martin Robertshaw