Car Insurance Renewals

UK motorists are wasting £1.3 billion a year by auto-renewing car insurance.

Every year in the UK we’re spending a whopping £1.3 billion more than we need to on car insurance simply because so many insurers are setting up policies that renew automatically.

 

Shop around at renewal

 

Our research has shown an estimated 23% of drivers – that’s over six million motorists – auto-renewed last time around and paid up to £113 more than they had to on the cost of their cover.

 

So it’s easy to see why you should shop around at renewal time instead of just accepting shouldn’t your current insurer’s offer – this is an instance where loyalty very rarely pays.

 

And it’s not just a problem of money going to waste >

And it’s not just a problem of money going to waste

 

If you allow your insurer to auto-renew your policy but don’t check to see whether key features of your cover have been altered, or don’t tell your insurer of changes to your circumstances, such as moving house or getting points on their licence, you could find your cover is no longer valid.

 

It’s not all bad news though

 

Auto-renewing does have its benefits, most notably that you’re never left without insurance in place and, when you own a car, having it insured is legal requirement.

 

But that alone is no justification for the practice of auto-insurance to continue in its current format.

 

So below are our eight ‘best practice’ recommendations to get a fairer deal for motorists and help millions save on their car insurance:

Auto renewal manifesto

 

1. Consumers should be clearly asked whether they want to opt-in to auto-renewal when first buying their policy

 

2. Renewal notices should be in plain English

 

3. Last year’s policy price should be displayed clearly on your renewal notice, next to the new price

 

4. Any significant changes to policies – such as the imposition of a larger excess or removal of breakdown cover – should be clearly displayed on renewal notices

 

5. Renewal notices should prominently warn customers they must inform their insurer of any changes in their circumstances, such as a new address, change in job, annual mileage or points on their licence

 

6. Renewal quotes should clearly include proof of any No Claims Bonus, to enable easy switching to alternative policies

 

7. Once you’ve renewed, you must be prominently told about the cooling off period, during which it should be free to cancel

 

8. Cancelling auto-renewal should be really simple when you receive your renewal, such as a click-through button on emails or a simple cancellation form sent with the letter.

 

 

 
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