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What You Need to Know About Policy Renewals
When Will Your Policy End?
Your policy will be renewed after the agreed amount of time from when you first took your policy out. So, it could be any day of the year (depending on the length of your policy period). This will most likely be annually or semi-annually (6 months). When you know your policy is going to be coming to an end, you should definitely start to look at your renewal. You should go over your policy and make sure it still covers you where you need it.
An insurer will tell you by email or mail when your policy is coming to its end. This is usually around 40 days before, so it gives you enough time to consider different options.
If you don’t opt out of auto-renewal, an insurance company will automatically renew your policy on its end date. They do this so that you stay covered if you’ve missed or forgotten your renewal date. This is often why it’s so easy to stay within the same firm.
But, this doesn’t mean it’s best for you. A lot of insurance companies will take advantage of this; raising your premium at the time of renewal, which could add up over the years. In the end, you could be paying significantly more than if you’d shopped around.
However, by law the company has to let you know last year’s price. This gives you the chance to gain insight on how much, if by any, your insurance is going up with each auto-renewal.
After four years of sticking with one insurer, they should encourage you to shop around. This is so you have the chance to find something that suits you more.
When Your Insurance Renews
The renewal period is the best time to look over your policy and review everything on it. You need to make sure you read your renewal documents and check your policy for any changes, such as premium increase or requirements you need to follow. Perhaps you need to make changes to your coverage or verify for a discount?
There is no grace period when it comes to some insurance companies. Therefore, if you want to stick with the insurer, make sure you make your payment on time. Although, if you know that your company offers a grace period (which can be up to 30 days), then make sure you use the time wisely.
About a month before your policy is due to end is when you should be looking around for other insurers. Comparison sites are a good place to go for this. However, when doing this don’t just compare the prices, compare the cover too. Just because an insurance is cheaper, that doesn’t mean it is better suited for you, or a better deal. Choose the one that best meets your needs.
Give yourself time to consider all your options and make sure you go with the one most suited for you. Don’t stay with your current insurer for loyalty reasons, or because it looks easier.
If you find a good price somewhere else, you should look more into the company and how they handle the insurance you want. You could even use this as leverage to negotiate with your current insurer, if you’re not sure you want to switch. In some cases, since they won’t want to lose you as a customer, they might offer a different deal.
Unsure? Speak to Your Insurer
If you are still unsure as to what to do, or the type of cover you need exactly, then going to your insurance company is the best bet. Talk through with that what you’re unsure about and they can guide you through the process. They can explain options available, and help you notice if your current policy doesn’t meet your needs. They are the experts, at the end of the day.
Understanding policy renewals is extremely important. You want the best scope of cover with the best price possible, so knowing what it is exactly that you need is key. TMI may be the next place you need to go to.