So? do we like auto renewal…..or not?
Looked though your post and found an unexpected insurance bill or car Insurance renewal confirmation letter? Then the penny drops and you realised your car Insurance has been automatically renewed. You’re not alone. In fact hundreds of car drivers don’t realise that they have been automatically signed up for auto renewal on their car insurance until it’s too late. Some simply prefer to select this option thinking that it is the easiest way but this is a mistake that is all too common and could mean that you miss out on getting a better deal in your car insurance, with millions of customers opting for auto renewal a year. Whilst some face cancellation fees and other financial penalties for opting out of auto renewal.
According the Financial Ombudsman, hundreds of people have made complaints about their auto renewal car insurance.
If auto renewal is for you then you need to make sure that you have all the facts should you change your mind and make sure that you are getting the deal you thought you was. Some people do prefer that fact that they don’t have to go through endless reams of paper work and sign a contract each year and so prefer an instant automatic renewal. If you get bogged down with contracts and documentation and looking through different policies and prefer to stay with what you know then this could be the option for you but do make sure you know what you are signing up for. It doesn’t matter how many questions you have for your car insurance provider it’s an important mater and you need to ask away until you have crossed all the t’s and dotted all the i’s.
However , it still remains a worry for some whether the decision to have automatic renewal on your car insurance is the right thing and they may not always the best deal.
Could it be just another way of firm’s locking in customers?
Just make sure you ask the right questions to help put your mind at rest. Things you need to ask your provider could be:
- If you opt for auto renewal but then change your mind, is there a fee to be paid to be released from auto renewal?
- Will you be notified in advance of the renewal in case you should change your mind?
- Will your no claims bonus be included in the auto renewed contract?
- Will your premium go up each year?
Above all, read your renewal letter with care, make sure you note down on your calendar the renewal cut off date and a lot of firms may have a policy where your policy is renewed if you simply ‘ do nothing’.
Whatever you choose, an informed choice is always best!