Having your car insurance auto-renew can make life admin a lot simpler, but is it really the best way to buy car insurance? Here, comparison site mustard.co.uk weigh up the pros and cons of auto-renewing car insurance so you can make an informed decision.
What happens if my car insurance auto-renews?
Some insurers automatically renew your car insurance policy when it expires, this means you can be confident about always being covered.
If your policy is set to auto-renew, your insurer will usually contact you a few weeks before your policy expires. They’ll tell you what they intend to charge you when they renew your policy. They should also tell you what you paid the year before so you can compare their prices.
Do all car insurance policies auto-renew?
No, not all policies auto-renew and it depends on the insurer and what you agreed with them at the time of buying the policy.
With that in mind, it’s best not to assume your policy will automatically renew. If you’re mistaken and your policy simply expires, you could find yourself driving without insurance, and the penalties for this can be severe. In the worst-case scenario, you could actually lose your licence but otherwise, you’re likely to be given a hefty fine and penalty points.
Isn’t it easier just to leave car insurance to auto-renew?
Having your policy auto-renew is of course easier, and it means you don’t have to worry about driving uninsured.
If you’re very busy or just not great at organising your admin, automatically renewing your car cover is a sensible thing to do, giving you one less thing to sort out. That said, auto-renewing your insurance doesn’t always mean you’re going to get the best value for money.
The car insurance market is hugely competitive so just because your current insurer gave you a great deal last year, it doesn’t mean this year’s quote is the best on the market. In fact, the only way you can be confident of getting the most for your money is to compare quotes every year.
Can I cancel my car insurance if it auto-renews?
Yes, the good news is that by law you have 14 days to cancel your car insurance policy, even if it auto-renews. This cooling-off period starts on the day your policy became active or the day you received your policy documents (whichever is later).
If you do change your mind, contact your insurer. They should arrange a refund but may deduct money to cover any days the policy was active. Depending on the insurer, there may also be a small admin fee.
You can still cancel your car insurance after the 14 day cooling-off period but you’ll be expected to pay a cancellation fee which can be pricey.
When is the best time to compare car insurance?
Your insurer will usually send out a reminder that your policy is due to end a few weeks before its expiry date. Remember – if it’s set to auto-renew, they should also send you a renewal price and last year’s price for comparison.
This exit ‘window’ is the perfect opportunity to start shopping around for new quotes, regardless of whether your policy auto-renews. If you find a deal you like the look of, you can arrange cover to start as your old policy expires, giving you a seamless transition between the two.
Alternatives to auto-renewal
When it comes to car insurance, auto-renewal has become a common and convenient option for many drivers. However, simply allowing your policy to renew automatically year after year may not always be the best choice. There are several alternatives to consider that can help you find a better policy and potentially save you money on your car insurance.
One alternative is to shop around for a new policy before your current one expires. This gives you the opportunity to compare quotes from different insurance companies and find the one that offers the best coverage at the most affordable price. You can also take this opportunity to review your coverage and adjust it as needed to better fit your needs.
Another option is to negotiate with your current insurance company. If you have been a loyal customer for several years and have a good driving record, you may be able to negotiate a lower rate on your renewal policy. It’s also a good idea to review your current policy and see if there are any discounts or rewards available that you could take advantage of, such as a safe driving discount or a multi-policy discount.
A third alternative is to consider a pay-per-mile insurance policy. These policies allow you to only pay for the miles you actually drive, rather than a set amount each month regardless of your mileage. This can be a great option for people who drive very little and want to save money on their insurance.
Ultimately, the best alternative to auto-renewal will depend on your individual needs and circumstances. However, by considering these options and taking the time to shop around, you can find a policy that provides the coverage you need at a price you can afford.
Should I leave my car insurance to auto-renew?
Whether or not you should auto-renew your car insurance is down to personal choice. However, while it certainly makes life easier, it doesn’t always mean you’re going to get the best value for money, and you could save more than you think just by comparing what’s on offer.
At mustard.co.uk, you can compare quotes from leading UK insurers in as little as five minutes. Not only is it quick, but it’s also simple too – just answer a few questions and we’ll take it from there.
