Why you should never auto renew?
Article, March 10, 2020
Insurance premiums are always rising with the increase of claims and things that we need to insure. According to the Association of British Insurers, the national value of insurance premiums in the UK stands at a colossal £88.8bn, with insurers paying out more than £12million a day on car repairs alone.
With this increase in claims, comes an increased pressure for insurers to increase premiums to their customers, hence the increase in your renewal quote even if you haven’t claimed; a staggering 5.2million UK motorist fell for this auto renew trap, costing them a massive £1.5 million. Many people feel that this is the easiest option, with the least effort required.
Many insurers offer the best deals to their new customers and therefore the loyalty aspect of insurance is pretty much out of the window. Which? found that drivers who allow their car insurance to auto–renew almost always end up paying more for their policy, even though, according to research by Moneysupermarket.com, the average insurance policy fell by £67.
This is why it is so important to shop around and get the best possible price each time your renewal date arrives. It is recommended that you carry out this research about 4 weeks before your insurance is due for renewal.
Price comparison websites can be handy to find all the quotes in one place, but be cautious about the prices and do not simply go for the cheapest option as you might not be getting the right level of cover. Which? magazine recommends that you always read the terms of conditions before you buy and get in touch with the insurer if you need anything clarifying.
This can obviously take you time filling in online forms and ringing around to find the best price, bartering along the way with different insurers to see if they can get it even cheaper.
This is why at Needham Insurance we pride ourselves on getting you the best possible renewal price we can. We do not work on the policy of auto renew and if your current provider is not the cheapest, we will recommend you switch; doing the leg work for you. In addition to finding you the best price, you can rest assured that we will ensure that you are covered with the right policy for you and all the terms and conditions are explained as part of the service.Back