01 August 2024
7 Car insurance renewal tips
6 minutes
When your car insurance is up for renewal, it’s an opportunity to evaluate your current plan, compare your options, and potentially save some money. Here, we’ve gathered some of our top car insurance renewal tips to help you find the best deals, without compromising on the cover that gives you peace of mind.
First, let’s look at how the renewal process works, so you can make the right decisions.
Does car insurance automatically renew?
Most of the time, your car insurance policy will cover you for 12 months, and it’ll renew automatically for another 12 months at the end of your current agreement. This auto-renewal exists partly because it’s so important to have valid car insurance at all times — it’s illegal to drive on UK roads without it.
That said, there are exceptions to the automatic renewal rule. So it’s worth checking your terms and conditions or speaking to your insurer if you have any concerns about your coverage.
If you’ve lost track of the dates on your policy, and you’re asking “How do I check when my car insurance is due for renewal?”, you can check with your insurer or look at the motor insurer's database to see whether you’re still safe to drive.
Get the lowdown here: When is my car insurance due?
What happens when it’s time to renew car insurance?
When your contract is coming to an end, your insurer has to notify you. This means your insurance should never surprise you by rolling over into the coming year.
You’ll get a letter from your insurer telling you:
- What your premium was for the past 12 months, so you can easily evaluate your new quote.
- How they’ve calculated your premium for the coming year. It’s quite likely this will be higher because of inflation and the increasing costs of insurance. It’s almost certainly going to be more expensive if you’ve made a claim, been involved in an accident, or picked up any penalty points over the previous year.
They’re also legally obligated to tell you to show around and compare quotes, especially if you’ve already let your policy auto-renew for a number of years in a row.
While car insurance automatic renewal is less of a hassle, you could well miss out on a better deal if you do nothing when you get your renewal letter.
So, when the renewal window approaches, here’s what to do.
How to get the cheapest car insurance renewal: Top tips
1. Get the timing right
Still asking, “When do you get a renewal quote for car insurance?” or “How much notice do I need to renew my car insurance?” We’ve got you covered.
Your current insurer should send you a letter with a renewal quote three to four weeks before the renewal is due, giving you enough time to approach new insurers.
We’ve found that this time — about three weeks before the end of your policy — is the best window to renew. Both renewing earlier or waiting until closer to the expiry date can increase the rates you end up paying.
Find out more: When’s the best time to renew car insurance?
2. Pick up the phone and negotiate
Remember, the renewal quote your current insurer gives you is only set in stone when your insurance rolls over. Often, if you contact the customer service desk after you get your letter, you can negotiate a better deal.
This strategy can be particularly effective if you’ve already received a quote from another insurer offering a better price. You can simply ask if your current insurer can match their offer.
Your insurer isn’t obligated to say yes, but you don’t have a lot to lose by trying. If their price is final and you know you can go elsewhere, just ask them to cancel the auto-renewal and make sure the start date of your new policy doesn’t leave you with a gap in your insurance cover.
And speaking of shopping around…
3. Get a range of quotes
The Financial Conduct Authority has put regulations in place to make sure that you won’t be penalised for staying with the same insurer. Specifically, insurers are not allowed to offer a better deal to new customers than they would give an existing customer in the same circumstances. This being said, there’s still a high chance you’ll get a better car insurance deal if you approach new companies to ask for a quote.
If it’s the thought of losing your no-claims bonus that’s keeping you with your current insurer, remember that you should also have some protection here. Your clean insurance record should transfer to your new insurer automatically. Just double-check before you commit to make sure you won’t be losing out.
4. Compare types of insurance
In some circumstances, you might want to consider switching to a different type of insurance when you renew, as this can significantly impact your premiums.
The three main types of insurance in the UK are:
- Third-party only
- Third-party, fire, and theft
- Comprehensive insurance
You could also consider black box insurance. Telematics aren’t just for new drivers; policies for experienced drivers can also help you lower your premiums, especially if you have a low annual mileage or you can take steps to improve your driving behaviour.
5. Consider add ons
When you need to renew car insurance, it’s a great time to consider any add-ons you have for your policy. These are additional pieces of cover you pay for as a one-off on top of your annual fee.
Sometimes, your circumstances change, and you no longer need an add-on you’ve been using before (like if you now have breakdown protection from elsewhere). Alternatively, choosing a less expensive insurance policy but including an add-on like excess protection, can give you the cover you want while still saving money.
Tailoring your policy might not add as much to your insurance premiums as you think, and it can help you find the balance of risk and expense you feel comfortable with.
6. Change your security features
Car theft has spiked in recent years in the UK because of the high cost of second-hand cars. This means adding security features to your vehicle can help lower the cost of your insurance.
You might be able to add security features to deter criminals, including:
- RFID pouches to prevent the theft of keyless cars
- Steering wheel locks to deter car thieves from attempting to enter your vehicle
- Immobilisers, which prevent the engine from starting without the proper key
Speak to an expert about having these fitted and to your potential insurers about the impact they could have on your premium.
7. Look at your voluntary excess
Your voluntary excess is the amount you agree to pay towards repairs or replacements if you need to make an insurance claim. Any insurance policy you get will likely include compulsory excess. You can then adjust the amount of voluntary excess you pay on top of that and potentially lower your renewal quote.
Raising your voluntary excess makes you seem like less of a risky customer to an insurer. Put simply, you’re less likely to claim for a small repair like a scrape or a dent, and more of their costs are covered if you do make a claim.
Note: It’s essential to make sure you can always afford your insurance premium, plus any excess you would potentially have to pay on top.
Additional tips for your car insurance renewal
Lots of different variables influence your insurance renewal quote, and many are outside of your control. For instance, you can’t do a lot about your age and the number of years you’ve been driving, and you probably won’t want to move house or change jobs just to save on your car insurance. But there are some other areas where you could make changes, which insurers will view positively when it’s time to renew.
- Avoid vehicle modifications. You might love working on your car, and we mentioned above that security extras can lower your premiums. However, other changes to your car’s appearance or performance can make it more expensive to insure — either because it becomes more of a draw for thieves, or because it becomes more difficult to repair or replace. In this case, you might save money by going to a specialist insurer who’s familiar with this niche in the market.
- Add named drivers: Adding an experienced driver with a clean record to your policy can also reduce your costs. This is particularly true for newer drivers.
- Pay annually: If you’re currently paying your premiums monthly and could afford to pay them in a lump sum instead, making this switch could save you some further money on your insurance quote.
How to renew car insurance and get a great deal: Recap and next steps
If you have an annual car insurance policy, you’ll have a window every year where you can choose whether to let your insurance renew automatically, negotiate a deal with the same provider, or look for a new plan with another company.
The best time to shop around is after you get a renewal letter from your insurer (which is usually around three weeks before your policy renews). Auto-renewal should have a 14-day cooling-off period, so you should be able to cancel an auto-renewed plan and replace it with a better deal within that time, but to an extent, the earlier you renew, the better.
Remember, if you change policies in the middle of a contract, rather than when your insurance is up for renewal, you’ll probably be charged admin and cancellation fees. This can significantly reduce the amount of money you’ll save overall.
Ready to shop around? Get a quote from Howden online or give us a call today.
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