Auto-renewing car insurance is for mugs (probably)

Woman shocked on phone
How much?
"If you do decide to switch provider, don’t forget to contact your existing insurer to advise them that you wish to cancel your policy when it expires" Scott Kelly, Gocompare.com
  • | by Kristian Dando

When your car insurance policy is due to expire, your insurer usually sends a reminder to you in the post a few weeks in advance.

The letter will also cheerily inform you that your insurer has gone to the trouble of arranging that your policy will auto-renew, so you don’t need to lift a finger. Isn’t that nice that of them?

Well, not necessarily. By letting your policy auto-renew - like about 30% of drivers, according to Gocompare.com - you could be missing out on savings of hundreds of pounds.

Loyalty usually amounts to the sum total of diddly-squat as far as your insurer is concerned, and your renewal price may well be much more expensive than a similar deal elsewhere.

In fact, recent research from Gocompare.com found that drivers could be missing out on savings of as much as £237.14* by auto-renewing rather than shopping around.

Scott Kelly, head of car insurance at Gocompare.com, opined: “Shopping around is the easiest way to make savings on your car insurance costs. September is not only a peak time of the year for car sales, but car insurance renewals too.

"Many insurers will offer you the chance to simply auto-renew your policy and, while this may seem an easy and convenient option, it could leave you hundreds of pounds out of pocket as loyalty seldom pays. Many insurers will automatically renew your insurance unless you contact them to tell them otherwise, so if you do decide to switch provider, don’t forget to contact your existing insurer to advise them that you wish to cancel your policy when it expires.”

Compare car insurance at Gocompare.com

*Based on online independent research by Consumer Intelligence during 01 July 3012 to 31 July 2013; 51% of consumers could achieve this saving with Gocompare.com car insurance.