What to Do Concerning Auto Insurance Renewal

Published: February 17, 2018

Updated: May 15, 2018



As consistent as a wall clock, once per annum your auto insurance renewal notice will be presented to you. Like a surprise out of the blue you have an extra expense you simply cannot ignore. Though the search for car insurance does not sound like fun to many people, it does not mean you should be indolent and allow your current insurer to auto renew your policy except you want to lose a lot of money.

Many clients do not know that if they do not take any action when they receive a renewal notice, their current insurer will automatically deduct cash from their account to continue their insurance cover for another term after the renewal date has been exceeded – even if they buy another policy from another insurance company. This is done as a precautionary measure to make sure you do not drive without an insurance cover and helps you maintain your legal responsibility.

As your auto insurance renewal date draws closer, you may likely receive a letter from your current insurance company that will serve as a reminder of the renewal date of your policy. Your insurer will also use it as an opportunity to sell another policy to you by automatically producing a quote for the next term and providing policy documentations and a new motor insurance certificate.

You must get in touch with your insurer if you do not want to renew your policy with them. They will outline the requirements in your renewal notice letter. If this is not done, you will automatically get another term and you will be charged for it.

At this time it will be tempting to sit back and do nothing. Sit back with the false belief that everything is been taken care of on your behalf. You should do something about it if you do not want to be ripped off. Use an auto insurance comparison website; it is your easiest way to know if you are offered the best price and best policy by your current auto insurer. It will also help you find out if anyone can offer you a better deal. If you do it this way, all you need to do is ensure that you are comparing the same policies side-by-side – using price as the only deciding factor may give you a policy that will not cover you completely.

It is common to see insurance renewal quotes increase even when it is possible to have another claim claim-free year. This happens simply because customers allow laziness to prevail by allowing their policies to auto renew. This allows insurance companies to recover some of their expenses and keep you with them e.g. marketing and advertising budgets. This shows that sometimes loyalty is not repaid.