11 October 2011

Car insurance: how shopping around saves money

British drivers appreciate low costs when it comes to their car insurance. Indeed, one in five motorists would switch insurers for a saving as low as £25.

British drivers appreciate low costs when it comes to their car insurance. Indeed, one in five motorists would switch insurers for a saving as low as £25, according to new research.

A potential saving of £25 would be a good enough reason for switching car insurance providers for 22% of British motorists. Despite this, the latest study from a leading comparison site revealed that one in four drivers automatically renew their car insurance with their current provider instead of shopping around.

Unsurprisingly, price is the main source of motivation for switching car insurance providers. 69% of drivers admitted they would change insurer if they found a cheaper policy with the same coverage. 7% took even less convincing, confessing they would switch for added incentives such as a cash back offer, free breakdown cover or a gift voucher.

Savers by categories

Surprisingly enough, figures show that saving money on car insurance is valued more by older Brits than by their younger counterparts. While a saving of £50.33 is a good enough reason to switch for those over 55, Brits aged 18 to 34 are looking for savings of £61.77 on average.

Regarding regions, the research highlights the significant difference between drivers in London – who look for at least £71.88 in order to make them switch their car insurance policy – and those in the South West, who are looking for an average saving of £43.04.

Despite drivers caring about finding cheap car insurance, recent figures released by the Motor Insurers' Bureau (MIB) revealed that a shocking 1 in 3 (34%) of all uninsured drivers are under the age of thirty.

In fact, according to the study, 1 in 10 drivers among the 18 to 34 age bracket are unaware that car insurance is a legal requirement.