Switch or stay? Your guide to car insurance renewals

For many drivers, there's one essential question they ask themselves – do I switch or stay?

There's so much to consider when thinking about your car insurance renewal, to help you make the right choice for you and your vehicle.

In this guide, you'll learn the basics of car insurance renewals, and understand all the things to consider when making that all important decision – switch or stay?

Picture 1 of Switch or stay? Your guide to car insurance renewals

What is a car insurance renewal?

A car insurance renewal is the process of continuing with your insurance provider, and renewing your policy for another term.

When your car insurance contract reaches its end of term – which is usually after one year – you're given the option to either renew your policy for another term (annual period), or switch to an alternative provider of choice.

This can apply to all types of insurance policies, whether you've taken out a telematics, electric, or multi car insurance policy, for instance.

The process – whether renewing or switching – is usually a smooth transition, but this depends heavily on the insurance provider you choose.

What to consider when renewing your car insurance?

When your car insurance policy reaches its end of term, there are a few things you'll need to consider when looking to renew your policy. This will ensure you secure the right provider and maintain the best insurance premiums for your car. Some things to consider are:

Are you choosing the best policy for your car?

One of the first things to consider when looking to renew your policy, is whether your current policy is best suited for your car.

It's essential that your chosen type of car insurance is the most appropriate fit for your vehicle, giving you the best premiums and perks available.

For instance, if you own an electric vehicle (EV), or are considering purchasing one, then it's best you switch to a provider that offers EV insurance, designed specifically for the unique aspects of EVs.

Alternatively, if you've got more than one vehicle you need to insure, your best option is multi-car insurance, which gives you an easy and cost-efficient way of insuring multiple cars.

Choose the right insurance for your car, and you'll be in the best position as a policy holder.

Are you receiving the best premiums?

Another thing to consider when renewing your car insurance, is whether you're receiving the best premiums from your current policy, or whether you can find better elsewhere.

For many drivers, saving money on car insurance is a prime goal, so make sure you look for the best premiums on your insurance.

For example, you could consider telematics insurance if you're a new or young driver. This is because drivers of this demographic are more likely to receive higher premiums, since they're statisticallymore likely to be involved in an accident.

With telematics, however, you have technology installed in your car that analyzes your unique driving behaviors, so your insurer can base your premiums on how safely you drive, not those similar to you.In this instance, safer driving would result in discounted premiums from your insurer.

Therefore, look for the best premium rates on insurance before you decide to renew.

Is your renewal process smooth and simple?

You should also consider the renewal process itself, with your current provider, and how easy and manageable it is for you.

With some providers, it can be a hassle to renew your car insurance, leading you through a journey of calls, emails, forms, etc., that take up much time and effort.

However, with certain providers, managing your car insurance is an easy and accessible process.

For instance, if you choose a multi-car insurance policy with the right provider, you'll be able to access and adjust every aspect of coverage for all your cars, from one central place. On top of this, it also means one renewal date for your cars, as opposed to several dates to remember with multiple policies.

Thus, a simple switch to a more efficient provider can offer you an easier way of manging and renewing your car insurance each term.

Lesley Montoya

Update 09 November 2022