When the time comes for you to consider renewing your insurance for another year, you may simply go ahead without stopping to even consider the other options. That can be understandable, given how time-strapped many of us are. However, by simply renewing that policy, you almost definitely will be left out of pocket. Here are several reasons to consider switching instead.
Your premium has increased since last year
In August 2016, the UK’s Financial Conduct Authority (FCA) unveiled new measures intended to encourage a higher number of people to resist simply renewing their insurance when prompted to do so. In fact, due to these measures, you could soon have more reason to abandon your current insurance provider and look around for a new deal, should this be financially desirable.
But how will you know whether it is? One big reason is that, since April 2017, UK insurers have been required to, whenever renewal time comes around, let policyholders know what premium they agreed to last year. This will enable the holder to readily compare that premium with what they would pay if they renewed – a move that is unlikely to look quite as appealing as it did before…
Consider that, as the Money Advice Service notes, a UK home insurance premium usually rises by £9 annually. Whereas Brits collectively spend £37 million too much per year when they renew, they could actually each save £59 annually if they switched to better deals.
You have already renewed your insurance four times in a row
Letting a policy automatically renew itself can feel comfortable. After all, it can ensure that there is no gap or interruption in your coverage. However, in the long term, you could make significant savings if you seriously consider switching.
Indeed, should you have already renewed a policy four times in as many years, you might have started receiving additional messages that shine a light on the possibility of you switching. The Money Advice Service’s Nick Hill has enthused: “It’s good to see that providers will provide stronger reminders to shop around. So take advantage of these reminders and shop around.”
You could do that shopping around with assistance from an insurance broker. If you are UK-based, a good choice of broker would be Call Wiser, which can compare insurance policies from more than 30 insurers before giving you a quote for the most suitable policy it finds.
The company doesn’t offer a “blackbox policy” for your car
“Blackbox policy” is a colloquial term for a car insurance policy where the insurer provides a telematics system to be installed in your car. There, the system can monitor various aspects of your driving – including your speed, the aggressiveness of your accelerating and braking, and whether you drive at times often deemed dangerous, such as early morning.
Once you have spent a certain amount of time driving safely with this telematics box recording it, the premiums for your car insurance could significantly drop, says This is MONEY.co.uk. Of course, the higher your premiums currently are, the more you stand to gain – making blackbox policies particularly worthwhile for younger drivers who insurers often consider relatively risky.
Your private health insurance no longer meets all of your needs
Certain countries, such as the UK, can provide much healthcare free of charge. That healthcare would be publicly funded; however, you might still have what is called private health insurance. This could enable you to reduce how long you wait for medical treatment.
Nonetheless, it’s worth regularly looking back at the small print of your existing private medical insurance policy. In doing so, you might realize that the policy no longer accounts for particular circumstances that have arisen since you originally took out this insurance.
For instance, while you might have been single back then, you might now have a partner and children who would not be covered by the same policy if they suffered adverse health. This is one scenario highlighted by The Telegraph, which also cites another possible situation where you may be interested in a policy offering benefits different to those available from your existing insurance. In either situation, an insurance broker could help you find a new, more suitable policy.