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If you have taken out travel insurance, automatic insurance renewal may seem like the best idea when it comes to the end of your policy. However it is important to be aware of both the pros and cons of auto-renewal, as consumers may lose out on potential savings. Here we have gathered all you need to know about automatic renewal so that you can make an informed decision.
The insurance renewal process is simply the easiest way for your insurance company to keep you as their customer. It also benefits insurers as they incur fewer costs than in acquiring new customers. If you are happy with the cover provided to date, or if you have not yet had any incident that required you to use your cover, you may also be just as happy for the policy to roll over. However, it can be a good idea to avoid renewing automatically and later being stung by the insurance company who refuse to help when you attempt to make a claim.
Although auto-renewal benefits you as the consumer by saving you some time and effort searching through the marketplace to find the best insurance policy, you will gain more benefits from having a look around each year.
There are quite a few key advantages to the alternative of shopping around:
While shopping around last time, you may have opted for the cheapest policy available to you. This might lead you to believing that if this was the cheapest insurance provider last year that they most likely still are. Unfortunately, this is not a given.
Insurance companies change their pricing structures regularly, and this adds to the general confusion around trying to find the best available insurance policy at the best price.
By looking around the insurance marketplace with the help of Ucompare.ie when it comes to insurance renewal time, you are sure to make the most informed decision about whether to renew your policy or not. Take a look here at how to choose the right travel insurance policy.
Make sure to read exactly what potential alternative policies would cover you for, as you might find that a cheaper price may be due to inferior cover. It is crucial to examine your needs on a year-to-year basis and choose the best price with sufficient cover for you accordingly. Please read our complete guide on cheap travel insurance.
A more relevant policy
If you experienced a road accident during the year and discovered that your car insurance didn’t cover you for what you tried to claim for, now is your opportunity to switch to a policy with greater coverage.
Whether you have a new car or will be travelling on the road more this year, as soon as your situation changes your needs change too. This is why you need to reevaluate whether or not your old policy will still be relevant for you over the next 12 months.
As your policy comes to an end each year, it is a good idea to take this time to do a quick reassessment of your needs and ensure that your insurance policy still meets your expectations before your insurance renewal date.
New customer benefits
If you do think that you may need to change your cover, one of the best ways to make extra savings in this situation is to take full advantage of new customer discounts and benefits. These benefits are not available when you automatically renew your insurance.
As the car insurance market is so highly competitive, insurers often offer new customer discounts to attract new clients. You are fully entitled to move your insurance provider and make the most of these deals.
Insurance Renewal protection
If you do decide that you are happy to renew your current policy for another year, it is important to be aware of your consumer rights. Insurers are bound by insurance renewal regulations which are in place to protect you as the consumer.
Firstly, you will receive a letter outlining the end date of your policy and the price for the next 12 months if you want to renew. You are entitled to be given all details of any changes being made to your policy, prior to car policy renewal to allow for reflection time.
If you change your mind, you are entitled to an insurance auto-renewal cooling off period of 14 days.
You have the right to shop around for quotes with other insurance companies and the right to decide not to renew. However, it is your responsibility as the consumer to inform the insurance company about your decision.
As you can see, auto-renewal helps the insurer more than the consumer in many cases.
When you receive a policy renewal letter from your insurer, you may find the information difficult to understand. As policies and prices are forever changing, you may be told that certain elements of your previous contract will now be changed. It can be tricky to know exactly where you stand and what your options are.
The most important thing to do is to not ignore this change of policy. Spend a little time reading through the changes and comparing these to alternative options from other insurance providers. Take into consideration any changes you might need to make at this time.
If you do decide to switch, don’t forget to inform your old insurer first. As most insurance policies are renewed automatically, you could face large cancellation fees if you try to cancel after the cut-off point. If you don’t contact the company, they will assume you are happy to renew.
Some consumers may opt for renewing their current policy simply as they find insurance policies complex or the idea of cancelling their current policy daunting.Using a comparison tool like Ucompare.ie can help you greatly with the task of comparing policies. You are in control of your decision and have full authority to switch at the end of your policy.
Ucompare.ie can help you with the task of shopping around to help you get the best value on your insurance renewal or switch. Make the most of the platform to compare your current insurer against competitors and see what savings can be made today!
Author: Ciara Maher
My name is Ciara Maher I am a freelance blogger, marketing assistant and English teacher. I enjoy creating multimedia content and managing websites, and am passionate about travel and technology. I am also studying web development at Google thanks to a scholarship I received from Udacity. I am currently writing blogs for Ucompare.ie, Ireland’s leading insurance comparison website. Having lived abroad, I understand the importance of travel insurance in particular as it has helped me in France and the USA.
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