Have You Forgotten About Your Car Insurance During Lockdown?

Tue 23rd Feb 2021

Motorists across the UK are being urged to check that their car insurance premium does not unwittingly auto-renew as thousands of car owners forget some of the simpler aspects of owning a car.

In normal times, when we are on the road more often and have a daily reminder to renew our car tax, MOT and motor insurance, it is more likely that we are to search for a competitive quote, but research from GoCompare has found that in lockdown, we might be sleepwalking into a higher monthly payment.

Data published by the price comparison website found that in February 2020, there were 15 per cent of drivers who auto-renewed without looking at other quotes, but this year that figure rose to 24 per cent - a nine per cent rise - the equivalent of 2.9million policies.

For those one in four who might have not had their car and driving to think about while in lockdown or working from home, that auto-renewal could cost them £277 in increased premiums.

The ‘loyalty-tax’ charged by motor insurance companies is leading to an even bigger covid bonus for an industry which has benefitted by having fewer cars on the roads over the last 12 months.

“March, with the release of the first numberplate of the year, is historically one of the busiest months for policy renewals,” said Lee Griffin, chief executive of GoCompare.

But our research highlights that millions of motorists are not actively engaging with the renewal process - potentially leaving themselves hundreds of pounds out of pocket.

“After nearly a year of living under Covid-19 restrictions, the economy has taken a battering leaving millions of people on reduced incomes. 

“Insurers are helping those in extreme financial difficulty through deferred payments, and, in these circumstances, it could be in the insured's interest to remain with their current provider.

“However, it's well known that unlike most companies which offer loyalty rewards and discounts for continued custom, insurers typically reserve their best deals to attract new business. So, motorists who are still paying their premiums really need to shop around, especially if they have been with the same provider for a while.”