6 Million Drivers get caught out at Car Insurance Renewal Time
We’re in the midst of peak insurance renewal season for car insurers right now. This is because roughly 6 million motorists could fall short of a minimum of £113 per year because they’re stuck with their current car insurance provider. Comparison site MoneySuperMarket reports that one in four drivers failed to get an insurance quote from another provider when their policy was up for renewal. The same is also true of motor traders, when they come to renew their motor trade insurance policies each year – the message is simple that you need to shop around. The report further reveals some common traps, some of which are highlighted below.
Auto Renewal – generally when you pay for your insurance, you enter your credit card details, which auto renews year after year. In most cases, there is often no way of opting out or in of auto renewal, unless you read the small print.
Smooth Language – car insurers are smooth operators and mostly use soothing language such as “we will take care of everything for you” and “happy anniversary.” This is aimed at making you pay top prices for car insurance without realising it.
Confusing Renewal Notes – insurers generally do not include last year’s insurance cost so there’s no way of knowing that you’re paying premium prices. Some insurers even go as far as selecting which motorists to inform about renewing their insurance and the ones to neglect.
Cancellation may be Difficult – there are a handful of insurance providers that even charge cancellation fees or make things difficult by getting you to dial up premium rate telephone numbers should you wish to cancel.
A study by GoCompare indicated that more than one in four motorists feel forced to stick with their insurance provider, while a similar number felt that insurance companies were sly in the way they renew policies. When comparing car insurance quotes, it is important to note that the cheapest policy is not always the best policy. You should choose the policy that’s right for your needs.
Generally all car insurance comparison tools will indicate which cover includes extras such as key replacement, legal protection, courtesy cars and what the excess will be. So make sure you determine the protection you actually need when comparing policies. In most cases increasing your excess results in a cheaper policy, but if you do choose to pay a higher excess, you might not be able to afford it in the event of an accident. Speaking of car insurance comparison websites, remember that not all car insurance companies are listed there for one or more reasons.
So you may find better luck by researching insurance providers separately online and getting a quote on either their official website or by ringing them up. Check if adding an additional driver to your policy – especially if they’re older or experienced – will bring the price of insurance down. Finally, car insurance companies will generally make assumptions with regards to convictions or even modifications on your vehicle, and it is up to you to clear the air about them. Never ignore the fine print and seek clarification if anything doesn’t look right.