Renewing your policy or looking elsewhere?

It’s that time of year for you. Yes, car insurance renewal time. You receive a reminder from your insurance company and you promptly forget about it. No point comparing to any other companies, you’ve got the cheapest (not necessarily the best) insurance you can get, so what does it matter? Surely they are all pretty much the same? Surely, after being with your insurance company for so many years, your loyalty will pay dividends and they will definitely give you a good deal?

Actually, your loyalty may be costing you more rather than less. Known as a “loyalty penalty” your insurance company knows that you can’t really be bothered to look around, especially online. Rest assured, they will take advantage of this! During 2018 and 2019, 48 percent of drivers realised they could make savings by switching but they just didn’t bother doing it. Some just thought they would automatically get the best deal.

Your insurance company will make you feel all warm and fuzzy inside as they tell you not to worry, they’ll handle everything, you can sit back and make a cup of tea while they do all the work. All that means is someone hits the enter key on their computer and Voila! your insurance has been renewed (at a cost, of course). Considering auto renewal costs, on average, £40 more, you might be beginning to see why we are going to great lengths to elucidate. Due to changes in regulations back in 2017, you are able to make a comparison when you are sent your auto renewal documents – you will see how much more you are paying compared to the previous year.

Of course, it goes without saying that you must look for a like for like policy to see how much you could save.  You could also think about increasing your voluntary excess, using accurate expected mileage and paying for the year rather than monthly; all of these could potentially result in more savings. 

Shopping around doesn’t take long. When it comes to renewing or taking out cheap car insurance, we compare several providers. Get started by filling out this 3-minute form, and you’ll be on your way.

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