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Car Insurance Firms Making Over £1bn By Auto-Renewing Policies

The latest news from Impounded Car Insurance UK – Seized car insurance policies at affordable costs.

According to reports, car insurance firms are making over £1bn every year by “keeping customers in the dark” and treating them like “suckers”.

Some insurance companies are not informing customers of price increases when they automatically renew their policies. By not telling the customer how much they paid for their previous yearly car insurance premium, insurance firms are keeping savings of up to £213 a year from their customers.

Seized car insurance

Instead of shopping around to find the best deal for them, many customers simply renew their policy because they believe that their insurer has offered them the best price available. If they were to shop around they could save up to £213.

Approximately 1 in 5 motorists in Britain allow their car insurance policy to automatically renew. That’s almost 6 million people – meaning that these drivers could collectively be losing over £1bn.

Older drivers are more likely to allow their car insurance to renew automatically without shopping around. As we recently reported older drivers are also seeing their premiums increase this year.

As of 2011 all car insurance companies renew policies automatically unless the customer cancels their cover. This is because laws were introduced that forced the insurance firms to roll over policies and renew them – so that there is no way the driver will be left uninsured which could lead to costly payouts they were involved in an accident.

The laws also help to reduce the number of drivers that are being penalised for driving without insurance. In some cases motorists have unintentionally broken the law as they had not realised that their cover had ended.

Driving without insurance in the UK carries severe penalties and your car can be seized by the police. Not only will there be financial penalties such as fines and compound release fees, you will also need to take out a seized car insurance policy to be allowed to collect your car.