Should I auto-renew my car insurance?
Auto-renewing your car insurance might seem convenient, but you could miss out on big savings on your premium.
How does auto-renewing work and is my policy doing it?
Auto-renewal means your car insurance rolls over into a new term (usually 12 months) automatically, without you needing to act. Your insurer will take the payment from your stored payment method or send you a bill.
Before this happens, they’ll send you a renewal notice with your new premium, terms, and any policy changes.
While auto-renewing means you won’t be left uninsured (which is important because driving without car insurance, even for a day, is illegal), you could end up paying more than you need to for insurance.
Why it pays to compare car insurance rather than just letting it auto-renew
Comparing car insurance takes just a few minutes, and it could save you a lot of money.
When your renewal date is coming up, use our car insurance comparison tool to check your options. You could find a better deal with the same cover and keep more money in your pocket.
Is there a best time to renew my car insurance?
The best time to renew your car insurance is between 3-4 weeks before your current insurance is up for renewal. According to our data, drivers who purchase car insurance 28 days before renewal pay an average premium of £368
Renewing at the right time could save you thousands of pounds over your driving lifetime.
See how much you could save by renewing at the best time.
How can I stop my policy from auto-renewing?
If you want to switch insurers, notify your current provider before your policy renews and confirm you won't auto-renew. Arrange for your new policy to start as your old one ends to avoid any uninsured gap, as driving without insurance is illegal.
Can I still cancel my policy if it’s already auto-renewed?
If your policy has already auto-renewed and you decide you’d like to switch, you can still cancel your car insurance policy without being charged within the 14-day cooling-off period.
After the cooling-off period, you can still cancel however you’ll likely be charged for the time your policy was active for, as well as an administration fee.
Frequently asked questions
Can I transfer my no-claims bonus if I switch insurance provider?
Yes, you can usually transfer your no-claims discount to your new insurer. You might need proof from your current insurer once your new application is processed, which you can request from your previous insurer.
If you switch policies mid-term then that time won’t count towards your no claims, as it hasn’t been a full 12 months. You only get a year’s no-claims bonus for completing a full annual policy with a single insurer.
Author
Sara Newell
Commercial Director
Sara Newell is the Commercial Director for Motor & Home Insurance at MoneySuperMarket. With almost 20 years of experience in insurance, Sara has built a reputation as a results-driven leader who...
