Should Insurers Provide More Information At Renewal?

When you receive your car insurance renewal documents the covering letter may well tell you that if you are happy to continue cover with the same insurer that there is no action required on your part especially if you pay by direct debit. One of the things that the documentation will inform you about is what your new premium will be for the next 12 months.

Would it help you to be told by your car insurance company how much you have been paying over the last year for your car insurance so that you can compare it with your renewal premium?

When you receive your latest renewal notice would you find it helpful to be told how much you had been paying for your car insurance over the last year?

However, there are very few insurance companies that tell you in their latest renewal correspondence what you have been paying each month in the past year so that you can easily compare any change in premium. How do you feel about that? Would you like to be told what your premium was in the same documents that tell you what you are going to be paying?

There are no doubt a lot of people that have car insurance that take very little notice of the renewal correspondence they receive each year. It is estimated that about 20% of motorists just renew their car insurance each year automatically. If more people were to shop around they may find that they could reduce the cost of their car insurance.

It would be interesting to see just how many more people would decide to get competitive quotes if it was clearly spelled out in the renewal documents how much they have been paying so that they can see just how much their premium is potentially increasing by for the next year. Yes, as a general rule, if someone has reached their maximum no claims discount and there has been no change in their circumstances in relation to their car insurance, you tend to expect a modest increase in premiums.

However, it is fairly straightforward to transfer to a different insurance company at renewal so more people should consider getting alternative quotes. One way of doing this is to use a price comparison website as the process is quick and simple.

This entry was posted in News and tagged , . Bookmark the permalink.