Car insurance – This driver’s error landed them a bill of over £600 

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One motorist had a nasty surprise when their latest car insurance bill came through for failing to do one simple thing. The driver failed to check their car insurance review letter and was stung with a huge price increase on their insurance. According to a  report from the Daily Mirror, a reader’s insurance was hiked from £405 to over £1,000. The reader was called June and she failed to check her renewal letter back in April and let the policy auto-renew. Her premium shot up by over £600 to £1,050. 

According to the report, when contacting her insurer she was told her premium had increased because she had moved house. 

The motorist had moved to a new property which was just five minute driving away from her old home.

Another reader, who stayed at the same home saw their premium increase by £147 to £560 in 2018. 

Apparently, the reason for the price increase was a perceived higher risk but the driver said no circumstances have changed from the previous year. 

Auto-renewal is still a problem when it comes to car insurance and can end up costing motorists hundreds of pounds every year. 

A large proportion of drivers are still automatically renewing their insurance cover which is costing them over time. 

Insurers are required to post information about the cost of their new cover compared to the previous year’s cover. 

Earlier this year MoneySuperMarket said that it could cost you on average £259 more if you fail to renew. 

Emma Garland, data scientist at MoneySuperMarket, commented: “Despite significant cost savings to be made by switching insurer, over a third of drivers still allow their policy to automatically renew.

“Not only is this costing people millions of pounds a year at a time when insurance premiums are on the rise again, it also highlights that the FCA’s legislation hasn’t had a huge impact on consumer behaviour.

“No matter when your insurance is up for renewal, it pays to shop around and find a better deal.

“By taking out a policy with a different insurer you could save up to £259 on your premium, which for many people is probably the next four tanks of petrol.”

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