Should I auto-renew my car insurance?
Many insurance policies now renew automatically at the end of a policy term, unless the customer specifies otherwise. This could mean that our customers are missing out on savings or discounts elsewhere.
Whilst this means that you can always be confident that you’re insured without having to remember to actively renew your policy, you may find that the price of your policy is increasing year-on-year, even if nothing has changed on the policy.
It’s important to know that many insurers change the terms of the policies from time to time. This could mean that the policy you are accepting is different to the one you previously agreed to. We advise doing your due diligence when it comes to reading into your policy terms.
Your insurance provider will usually send you a renewal reminder around three to four weeks before your renewal date. This reminder letter should contain the expected price for the forthcoming year, as well as the previous year’s price, so you can compare the difference in cost.
It’s worth noting that the expected price will be based on the information your insurance company holds for you. If anything has changed during the policy year, your insurer will need to know about this. Factors which affect your insurance premiums include the following:
- Age
- Occupation
- Address
- Vehicle Make, Model & Value
- Annual Mileage
- Prior Claims
- Convictions
You should ensure that all information you disclose to your insurer is complete and accurate. Insurance providers may refuse a claim or even terminate your policy if it is found that incorrect information was knowingly supplied to them.
Research has shown that the significant number of people accepting their auto-renewal price has led to an overall increase in insurance premium costs across-the-board. An annual saving could be achieved by shopping around for insurance quotes from numerous providers.
At CARS, we recommend using a local broker to obtain quotes that are accurate and tailored to your individual circumstances. Visit our blog ‘What should I look out for when purchasing car insurance?’ or give us a call on 01472 453622 for further information.
