Factors to Consider When Renewing Your Insurance

Every year, just before your insurance policy is due for renewal, you may receive a letter from your insurance provider. Usually, this letter is basically aimed at informing you that your policy is due for renewal and will often communicate that of you “do nothing” your cover will continue uninhibited. What this letter fails to tell you is that the new cover often comes at a higher price. Insurance companies often increase the premiums during these renewal periods without you knowing.

In fact, when most people take out insurance, they don’t realize that the cover is not for a single year and may continue unless they cancel it. Insurance companies also know that a very small percentage of their customers will take the time to find alternative quotes. So before you “do nothing” and end up paying more, you may want to do the following as recommended by Show Plates Direct

  • Read the Letter Carefully

When you get this letter at the end of the coverage year, take the time to read the letter carefully. By law, the insurance company is obligated to provide you with accurate information about the new coverage period including the cost and duration. If the information is not on the letter, you have a legal right to ask the insurance company to provide it. Also, while reading the letter, take note of the cut-off date for informing the insurance company you wish cover to discontinue, you may need it.

  • Talk to Them About the Premiums

From the letter or additional information you may gather from the insurance, it is important to determine if the insurance premiums will be substantially increased. If they will be, you may want to reach out to the insurance company to see if they will negotiate. Most companies are perfectly willing to especially if they take note of your initiative to ask.

But you should only do this if you’ve actively decided to remain with your current insurance provider. And when the time comes to negotiate for lower premiums, come armed with information from alternative quotes.

  • Take the Time to Compare Quotes

It is also important to compare insurance companies especially in quotes. This is true even if you do plan to stay with your current provider. It is a guarantee that you will find another insurance company that offers the same or better cover at a cheaper price. If it makes sense, you may want to make the switch to that provider or you can use this information to negotiate a better rate from your current provider if switching is too much of a hassle.

Telling your insurance provider that you have found a company offering better quotes and that you will leave unless they can match it, is one way to get cheaper premiums without the hassle of changing insurance companies. Many companies will readily agree to your terms since it is cheaper for them to retain you as a customer than take the time to find a new customer.