British consumers' unwillingness to shop around costs drivers a combined £1.4 billion a year according to a new survey.
Virgin Money claims that the average driver doesn't switch insurer until their annual premium has risen by 7.4 percent. But it noted that if every policyholder switched to a cheaper provider (where one is available) without waiting for a rise, the total savings would top a billion pounds.
The company also found that 45 percent of people never shop around for any form of insurance and simply take the first option they can find. Those who do shop around spend an average of 5.5 hours comparing prices.
That may sound a long time, but with the average motor policy now topping £800, even if that entire time was spent looking at car policies and the policyholder managed to secure a 15% saving, that "work" would effectively earn them more than £20 an hour.
