If your car insurance policy comes up for renewal in the next few weeks, don’t automatically accept the quote from your existing insurer – or you could end paying much more than you need to.

The new ’11′ number plates are due out on March 1, making it one of the busiest times of the year for car insurance renewals.

Millions of people stick to the same providers without shopping round for a better deal. Research by moneysupermarket found the average motorist sticks with the same car insurance provider for two-and-a-half years, with motorists over the age of 55 staying loyal to their insurers for three years and three months – potentially costing them hundreds of pounds.

Proving yet again that loyalty doesn’t pay when it comes to financial products, drivers who automatically renew are missing out on average savings of £270 a year.

With 6.3million motorists letting their policies renew without searching for a better deal, that’s a collective £1.7billion we’re paying into insurers’ pockets unnecessarily.

Misplaced loyalty and expensive apathy

A fifth of drivers let their policies automatically renew each year without shopping around. Of those, 11% don’t think they can find a better deal – so they don’t even bother checking.

Even more worryingly, 8% of motorists simply can’t be bothered to shop around. That’s 2.7million drivers who let apathy stand in the way of saving potentially hundreds of pounds.

Peter Harrison, moneysupermarket.com’s car insurance expert, said: “Insurers count on customer apathy to reap the profits, so it is alarming so many motorists are prepared to waste their hard-earned cash by not looking for a better deal.

“Even if you think your quote can’t be beaten, it only takes a few minutes to make sure you really do have the best value policy to suit your needs.”

It’s never been more important…

This is one of the most expensive times to be a motorist in many years. Car insurance premiums have been rising and the cost of fuel is at a record high.

In fact, the cost of car insurance is rising by an average of 40p a day, moneysupermarket.com analysis shows.

Drivers are suffering but they can help themselves by comparing car insurance providers and checking they have the best price possible for the cover they need.

Other ways to cut costs

Remember that as well as shopping around for cover, there are other ways to reduce car insurance costs. You could consider increasing the excess – the portion of any insurance claim you must pay yourself – although make sure it remains affordable.

Don’t claim for minor incidents either – making a claim can knock two years off your no claims discount, substantially boosting the cost of premiums.

Parking your car off-road, if possible, and installing as recognised alarm system could also reduce your premiums.

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