Consumers urged to scour the market before policy renewal

Posted :20-04-2005

Consumers have been advised to shop around for cover and not to automatically renew car insurance policies.

Car insurance premiums are becoming increasingly cheaper, with the average policy for comprehensive cover falling by 3.3 per cent over the past 12-months, according to the AA insurance index, published yesterday.

However, according to Sainsbury's Car Insurance over than one in three consumers experienced a rise in the price of their premium the last time they renewed it, MyFinances.co.uk reports.

To ensure they receive the best possible deal available, consumers are advised to search the market before renewing policies, a task which has been made increasingly easy by a rise in online insurance brokers.

"Some insurers entice motorists to take out their cover by offering very competitive premiums and then increase them substantially when it is time for the customer to renew their policy - even though their circumstances have not changed," said Joanne Mallon, Sainsbury's Bank car insurance manager.

According to a recent study by Sainsbury's Car Insurance, the average motorist could save a huge 32 per cent on the annual price of their car insurance policy by shopping around for cover.

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