One in every seven motorists claimed they had changed insurer when their policy came up for renewal, said financial website MoneyExpert.com.

It added that insurers were expected to increase the price of cover by 10 per cent in 2008 due to rising costs of claims.

Spokesman Sean Gardner said: “When it comes to car insurance, loyalty does not pay. The only way car insurance companies can offer discounts and incentives to attract new business is by passing on the extra cost to their existing customers.

“Have you ever wondered why your renewal premium always seems to rise slightly compared to the competitive quote you got initially? It’s because you’re paying for someone else’s cheap deal.”

Moneyexpert said that people aged between 35 and 44 were most likely to have switched provider during the past six months, while men were slightly more likely to have done so than women.


***BACK TO YOUR MONEY FOR MORE TOP STORIES***