With most Brits purchasing new or even used cars in the spring, now is the time of year that the majority of drivers begin to see their renewal paperwork arriving in the post, yet for those interested in keeping their car insurance rates down, experts say that automatic renewal is probably a poor choice.
One out of three Brits simply auto-renewed the quotes sent by car insurance companies in 2011, research shows, with the majority of this third claiming that their decision to remain loyal to their provider was to ensure that they received discount car insurance from them for the coming year. However, this belief is often mistaken, as renewal quotes are almost never competitive, as providers gamble upon the apathy of their customers to simply auto-renew without looking for a better deal elsewhere.
In fact, sometimes the only thing you need to do in order to gain a better quote from your current insurer is to ring them up and tell them you’re jumping ship. This will trigger nearly every provider to drop their initial quote to a more competitive one, a practice that has generated enough suspicion for the Office of Fair Trading to launch an investigation into the insurance sector, especially in light of new information indicating that premium prices have increased by around 21 per cent from 2009 to 2011.
The truth of the matter is that auto-renewals generally benefit the insurance provider much more than they ever do the customer, one insurance expert recently remarked. While the convenience of allowing your cover to roll over for an additional 12 months may be attractive, spending just a little time on the internet to shop around for the best deals could see you saving hundreds on your annual premium price.