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Should you Renew your Car Insurance with your current provider?
It’s Car Insurance Renewal time, so should you stick with your current insurer or move on to greener pastures?
In this Guest Post, by Taff Ahmad (aka my husband and one half of Money Savvy Muslim) we help you to explore your options and make the right decision for you.
It was that time of year again when our car insurance was due.
Many, many years ago when I first started to drive, I went with my dad’s insurer….you know, loyalty counts for something right.
Well, that’s what I thought but only came to my sense a few years ago.
REMEMBER, YOUR CURRENT CAR INSURANCE PROVIDER ISN’T AUTOMATICALLY GOING TO GIVE YOU THE BEST PRICE.
A NEW CAR INSURANCE PROVIDER IS GOING TO BEND OVER BACKWARDS AND GIVE YOU A COMPETITIVE QUOTE TO SECURE YOUR BUSINESS…..THEY WANT YOUR MONEY!
Get the Best Quote
At the time of car insurance renewal, say about a month before the end date, your current provider will give you a renewal quote.
The basis upon which they are quoting will be information such as personal details, car details, penalties/convictions and your accrued No Claims Discount.
Since we have two cars, we’ve been going for the ‘multicar’ package which has worked out pretty well up until now. Our current car insurance provider gave us a requote of £930 for the upcoming year which was a bit more than the previous year so I figured I’d shop around.
I used the information above to generate a comparison quote using a price comparison website such as gocompare, moneysupermarket or comparethemarket to get a good spread of the best quotes from most of the insurance companies.
You should note that certain companies don’t align themselves with any of the car insurance comparison websites so all you need to do is visit their sites individually and get the best quote. e.g. Direct Line, Aviva etc. This will give you a like for like comparison which will help you determine the best value for money.
The best multicar package I was able to get was almost £1,060 which was incredibly high and got me thinking…..‘What if I go back to the old school method of getting individual quotes for each car?’.
The best individual quotes from two separate car insurance companies came to a grand total of about £730.
That’s a saving of over £200 from my current provider!!
HOW TO TALK TO YOUR CURRENT PROVIDER
Now you have your current car insurance provider’s quote and, say, three other providers quotes.
Here’s what to do next:
- Firstly, call your current car insurance provider and get put through to the ‘leaving us’ department (they may call it something like cancellations or customer retentions).
- Give them a chance to improve on the quote they gave you initially, citing the competitors best quote. You can share with them the name of the insurer, the level of voluntary excess or anything you feel will help get the best price. But, don’t lie about anything because they have systems to check the details you are giving as well with the providers.
- These folk have the authority to look at your quote in detail and apply certain discounts etc that you won’t normally get such as where you drive, how you drive etc. If they can match your best quote from one of the new providers then great.
- If they can match or better the best quote from one of the car insurance providers found on the comparison websites, then take them up on their revised offer and sit comfortably.
In our case, the current insurer was able to get the multicar insurance down to within £20 of the combined individual quotes so I decided to stay put for the next year. Otherwise, request ‘proof of NCD’ (No Claims Discount) to pass to the new insurer, thank them for their service these last 12 months and that you’ll revisit them for future renewals.
TAKING UP THE OFER WITH YOUR NEW INSURER
If you find that your current car insurance provider is unable to get anywhere near best quote then its time to take up the new insurer with the quotation reference number generated when you went through the comparison website.
You would have got an email confirming the details of the quote too. Either ring them up to confirm and finalise your details or follow the link in your email which will take you through to the website and allow you to check and finalise all the details you gave.
I find it cheaper to pay annually but if you are unable to do this, then pay by monthly direct debit.
Once confirmed, you’ll get your policy details, usually by email, and about a fortnight later you’ll get a request to send in your ‘proof of NCD’ from your previous insurer.
Almost everything nowadays can be done via email at a time that convenient for you but just in case you need to speak to a person, most offices are manned till quite late in the weekday evenings as well as most of the day
Either ring them up to confirm and finalise your details or follow the link in your email which will take you through to the website and allow you to check and finalise all the details you gave.
Competition is good for these types of companies and it helps drive down prices.
At the end of the day, all these companies want one thing…your business and your money, so make them work hard for it, because we all want to save money right?
Let us know what you think?
Are you going to stay or go with your current car insurance provider?