The cost of car insurance may be falling, but many of us are still paying up to 40% more than we should simply because we're too lazy to shop around.
Experts say the average motor insurance policy fell from £470.17 to £462.15 in the second half of 2005, and have hailed online car insurance companies as the reason for the drop in prices. A large number of companies, some dealing only in specific sectors of the market such as young driver car insurance, are operating with lower overheads and so can afford to offer cheaper premiums.
A spokesman from Which?, an independent consumer group, revealed that the big names in car insurance are often not the cheapest, and many people fail to realise this and so simply renew their cover without searching around for a better deal.
Mike Naylor said, 'Big names come into the market with very good prices for a few years and then gradually increase them over the years, confident that apathy means around half of people will stick with them.
'This is why it is so important to make sure you shop around each year for the best deal.'
Mike Page from Hoot Car Insurance Services agreed, saying, 'Always make sure you compare prices before you agree on a policy.
'And if you're a youngster, a young driver car insurance firm will be able to offer you an unbeatable price, so it really does pay to deal with a company that know about motor insurance for young people.'