Insurance providers are well-known for auto-enrolling their customers on new plans once their annual policy comes to an end, with the subsequent deal often being considerably worse than the original arrangement.

However, drivers have become savvy to the procedure, which is why three-quarters (73 per cent) have now declared they want more information about their car insurance renewal process, according to recent findings from GoCompare.

Its study revealed 4.7 million people have had their policy automatically renewed without realising it, forcing them to lose an average of £256 a year.

Chief executive officer and one of the founders of GoCompare Lee Griffin stated: “Auto-renewal means that drivers remain legally insured to drive, without having to engage in the renewal process. But that convenience can come at a very high price. Those who allow their policy to roll-over for another year can pay hundreds of pounds extra for the privilege.”

Indeed, just over half (54 per cent) of motorists were aware they would receive a better deal by becoming a new customer than if they renewed their current insurance policy.

As a result, 13 per cent of drivers have remained with the same insurer for five years or more, despite new customers receiving the best offers.

Nearly half (47 per cent) think renewal wording in any communication from insurance providers needs to be clearer so they are easier to understand.

Earlier this year, the price comparison site predicted that insurance premiums will increase in 2020. It stated this is likely to be due to Brexit uncertainty, fraud and insurers having to pay higher repair costs, greater compensation payments, and increasing theft claims.

To keep your driving costs down, get regular car servicing in London.