Automobile insurance policies are renewed six monthly or yearly and therefore the premium is a repetitive expense. At the end of the term the company you are insured with will send you new terms for renewal. It will include your details, terms, conditions and the new premium amount. First thing you should do is to make sure everything is correct and as you want.
These details can be very helpful in your search for a better deal. If you like your current policy you can request quotations based on the current coverage. This will make the comparison easier and you wouldn’t be giving up on valuable protection just to get cheap auto insurance quotes.
Renewal periods are great for checking your alternatives and moving to a new vehicle insurer if you want to. There will be no hassle of cancellations and you won’t be charged any fees. You won’t need the previous provider to send you a refund back or anything. The policy will naturally end when it is due for renewal unless you set it up to renew automatically. In that case you have to make sure that the company knows you don’t want to continue with them.
People can be dissatisfied with the service they received, the price they are offered or just looking to see if there is a better deal. The best part of it is that they do not have to offer any excuse for parting.
Especially, seeing increases in the rates is one of the reasons for searching around a bit. At times, people might come across this unexplained increases. It is best to ask the insurer first. They should normally come up with an explanation. It may be because of the changes in the circumstances of the policyholder and it can be well justified.
However, you should not be accepting premium hikes due to incompetence of the company. If a company suffered high claims, they might feel the need to increase the rates. In fact, it does not have to be claim payments. It can just be bad management drugging the firm down. Whichever the reasons, these are not the problem of a loyal customer and they should not be made to carry the burden.
When your premium increase it is not just the difference between the last year’s costs and this year’s charges. Normally, a good driver with no claims should be getting discounts for every year that passes with no incident. The firm has already pocketed the premium paid last year and it is not fair for them to come back and ask more than fair. So, you would need to consider the fact that you didn’t get discounts and now asked to pay even more.
If there was a claim last year, the current insurer would be the one to understand you in this circumstance. Some companies may not make a big deal out of a small claim once in a while. Others may want to punish you heavily for daring to put in a claim. If you are unlucky enough to be with a latter type of company, do check around to see what else on offer.
Regardless of the circumstances, consumers should get several quotes at each auto insurance renewal period. One year is a long enough time in a dynamic market. It is possible that people missed a few years without doing anything else as well. Having had a competitive quote several years back from the current company does not mean that it stands to be the same.
Furthermore, auto insurers come up with much improved packages every year. Even you cannot reduce the rate it is possible that you get great coverage for the same price. Besides, what is wrong with confirming that you are still being looked after by the company you are with?