6m switch car insurance providers

7 May 2008 04:05am

More than six million people have switched car insurance provider during the past six months in a bid to beat rising premiums, research showed.

Around 14% of people said they had changed insurer when their policy came up for renewal, according to financial website MoneyExpert.com.

The group predicts that car insurance firms will hike premiums by around 10% this year due to rising claims costs.

But it said insurers were still able to offer discounts to new customers, by raising the cost of cover for existing ones.

Sean Gardner, founder of MoneyExpert.com, said: "When it comes to car insurance, loyalty does not pay. The only way that car insurance companies can offer discounts and incentives to attract new business is by passing on the extra cost to their existing customers.

"Have you ever wondered why your renewal notice always seems to rise slightly compared to the competitive quote you got initially? It's because you're paying for someone else's cheap deal."

The group estimates that around 35,000 people are switching car insurance provider every hour, saving up to 30% by shopping around for the best deal.

It said people aged between 35 and 44 were most likely to have switched provider during the past six months at 17%, while men were slightly more likely to have done so than women at 15%, compared with 13% of women.

YouGov questioned 2,051 people during April.

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