UK motorists may be missing out on hundreds of millions of pounds every year due to a common car insurance oversight, according to new research.
Recent data reveals that more than two in five drivers fail to renew their car insurance policies in time, allowing their cover to auto-renew and potentially costing them significant savings. Across all types of insurance, eight per cent of billpayers admitted they missed the opportunity to compare policies before renewal.
Of those, 43 per cent said they forgot to renew their car insurance, while 20 per cent missed savings on breakdown cover and smaller percentages let motorbike and van insurance auto-renew without checking for better deals.
Experts estimate that this could cost Britons around £677 million annually, as drivers fail to shop around for more competitive rates. Research from Go.Compare’s personal finance app Renewal found that comparing car insurance quotes could save drivers up to £362 per policy, meaning approximately 1.8 million motorists could be leaving money on the table.
Matthew Sanders, money spokesperson at Go.Compare, acknowledged that auto-renewal can be convenient, especially for those juggling multiple bills. However, he warned that drivers often miss out on “the best price” by not reviewing options before their policy renews. He advised, “Comparing policies when your cover is nearing its end is a great opportunity to cut costs, yet many forget to keep track of when their policy is due to renew and lose out as a result. It’s essential to make a note of your renewal dates so you can shop around first.”
The study also revealed generational differences in insurance habits. Around 14 per cent of drivers under 34 admitted they failed to manage renewals, compared to just two per cent of those over 55. Car insurance topped the list of most commonly forgotten renewals, followed by home insurance (31 per cent), pet insurance (28 per cent), and breakdown cover (20 per cent).
Other types of insurance commonly left to auto-renew included home buildings and contents insurance, gadget insurance, travel insurance, and motorbike or van insurance.
With potential savings of hundreds of pounds per driver, experts urge motorists to review their policies ahead of renewal rather than relying on automatic extensions.
