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Thursday, May 29, 2014

Millions of drivers pay over the odds for auto-renewed insurance policies

Car insurance tips
Changing auto insurers may be cheaper than renewing
If you own a car, you should be more than a little familiar with that sinking feeling that appears every time your insurance policy runs out. It's the same feeling that the self employed get when it comes time to submit their tax returns. It's exactly the same sensation that homeowners start to dread as they look over their energy bills for the year. It's that burning question - should I auto renew or should I start again with somebody else? Fortunately, the answer is as simple as can be - it's just actually taking the time to follow the advice that seems to be the hard part.

There are millions of drivers - about 8.8 million to be exact - who chose to auto renew their car insurance policies every single year. This is despite the fact that it is always cheaper to move on to a brand new insurer, in exactly the same way that applies to energy suppliers. It has been proven, time and time again, that this is the case - why are so many motorists happy to lose money on their premiums, when they could be making savings every year? The truth is that it's easier to auto renew, especially if you've got kids to drop off at school and a busy life to maintain, say the experts at Confused.com.

These drivers choose to automatically roll over their policies for the same reason that homeowners don't switch energy suppliers or mortgage providers once a year, even though they've repeatedly been advised to by financial experts. It's just easier to bypass the entire process and stick with a policy that has served you well for twelve months, whether or not you can get a better one for less money. Whilst it's a perfectly understandable move, it really isn't a clever one, say the experts at YourMoney.com. It has been estimated that drivers who auto renew are missing out on annual savings of over two hundred pounds.

A survey carried out by UK insurer Go Compare has, this week, revealed that forty six percent of the 8.8 million drivers who auto renew, do so because they assume they'll get a good deal. They surmise that as the cheapest available insurer last year, their chosen company must still be the cheapest available next year, say the experts at EveryInvestor.co.uk. The reality is that this is rarely true - in fact, many insurers rely on the fact that motorists are reluctant to change provider and they subsequently up their prices. If you decide to opt for a reliable insurer, like Direct Asia, you'll be treated as a valued and independent customer. Its team of experts aren't content to serve a customer base that is only present by default.

A reliable insurer is one who can find the right balance between customer service and customer respect, one who can hold onto its clients for the right reasons - not simply because they don't know where else to turn. This is usually achieved by offering genuinely valuable insurance deals to customers when the time to renew does roll around. It also happens to include making sure that these same customers are informed of such deals, not just left to make decisions about their policy without having the right information to hand. The only reason why it's cheaper to switch to another provider is because motorists just aren't giving insurers any reason to offer them a better deal. Don't be afraid to speak up and ask questions of your insurer - you'd be surprised at what you can achieve.

Image license: ER24 EMS (Pty) Ltd., CC BY-SA 2.0