Is Automatically Renewing Your Car Insurance A Good Idea?

It is highly likely that once a year an envelope drops through your letterbox and/or an e-mail arrives in your Inbox with your car insurance renewal documents. This document will probably tell you that your car insurance is being renewed automatically for you, you need take no further action and that your premium will be £x per month.

you may want to review your car insurance premium when you get your renewal documents

It may be possible to save money when you receive your car insurance renewal notice by shopping around

So, your initial reaction may be that you say to yourself that at least that is something less to have to worry about sorting out. You can rest easy in the knowledge your car is insured for another year so you will be covered if involved in an accident. That’s the good news!

However, how many of you actually compare the premium that you have been paying for the past 12 months with what your new premium will be? Not enough of you. It is likely that the premium is going to increase. In fact, it is estimated that it is costing drivers that don’t shop around for their car insurance at renewal around an extra £1.83 billion per annum.

So, if you would like to see if you could save some money and getter a better deal than you are being offered at renewal why not start to shop around. After all, you have more than enough time to do so following receipt of your renewal notice.

One of the great ways to check out prices and see if you can get cheaper car insurance cover is to use a price comparison website. No, they may not be able to provide a quote from every car insurance provider but they usually have a wide selection available.

You may be pleasantly surprised and find a better deal elsewhere. In which case, if your existing insurer will not match what you have been quoted by a cheaper insurer it doesn’t take much time and effort to switch insurers although do make sure that you are comparing like for like cover.

So, the answer to the above question is probably both “yes” and “no”!