When you buy an annual car insurance policy, you will probably receive an email towards the end of the year’s cover. In this email, your insurer will probably tell you that your insurance policy is coming to its end, and that they can renew the policy for you for the forthcoming year. You don’t have to do anything, and your insurers will simply let you know when the policy has renewed.
What your insurers might keep quiet is that your renewal charges will almost certainly be much higher than you bought your first year’s cover for. Renewal premiums are almost always significantly higher than first years of cover. Allowing your insurance to auto renew could cost you significantly more than searching around for a new provider.
On average customers could save £110 by switching provider at the end of their annual policy. Despite this, 16% of drivers do not bother to check whether they could save on their policy costs by changing. These people could stand to save a lot of money every year, simply by changing providers. What could explain why so many people don’t look for the savings they could make?
There is a general expectation among many people that their insurance will simply rise in cost every year. As many as 68% of drivers expect the price of their insurance to rise every year. Perhaps this explains why so many people are willing to accept a price rise without questioning it.
If you buy your insurance through a broker, you know that you are getting a personal service. At Alternative Insurance Brokers, we specialise in finding insurance that is the best price we can find you. If you get your motor insurance through us, you know that you will receive our best rate, every year. That is because we seek out insurance prices from across the market.