After all, the cost of living is constantly rising and challenging the increase or moving to a new insurer is likely to involve a lot of tedious paperwork and phone calls, and who has time for that?
If you take this approach towards your car premium, there is a good chance you will be overpaying by your third or fourth year. Many insurers offer a discounted price when you sign, but apply increases for the next two to three years.
The longer you stay with one insurer, the wider the gap will become between what you should and do pay and the bigger the insurer's profit margin will be. As an experiment, phone your insurer after getting a quote from a competitor - there's a good chance they will offer to reduce your premium.
Customers with similar addresses, financial history, vehicle usage and other risk factors can get widely differing premiums (in some cases, 50percent or more) from the same company. Here are some reasons for the gap between what you should be paying and what you are paying: