A lot of insurance agents today like to automatically renew your insurance policy when the current term ends however this can mean you pay more than you need to for the following year. The worst culprits for automatic renewals are car insurance providers and home insurance providers and while it may save them a few pounds in administrative charges it can cost you tens or even hundreds of pounds in the process.

What to do when you get the letter
Your insurance agent will send a letter through a few weeks before your policy ends with next year’s quote included. What you need to do when you get the letter is read it and ignore it… for the time being at least. Their quote for the following year’s insurance may be very competitive but at the same time it may be shockingly high and until you do a bit of research you’ll never know.

Researching the other options
It doesn’t matter whether you are looking for house insurance, car insurance or any other type of insurance you need to compare all of the available options before choosing the best for you. The easiest way to do this is with the help of a comparison website and luckily for you we have one here! You just choose what you want your policy to include and input your details once. Then you’re presented with a list of insurance agents and the prices they’re offering.

What’s in it for you?
Millions of people ignore their automatic renewal quote and subsequently use a comparison site to search for alternative offers, and generally they find that they save a significant amount of money by doing so. It only takes a few minutes but in some cases, and especially with regards to car insurance, it can reduce your quote by hundreds of pounds. Sticking with your present insurer is by far the easiest option and simply letting your policy be renewed may mean you have to do absolutely nothing but you don’t need to be a rocket scientist to use the BUYability comparison engine to find cheaper alternatives. Even if you don’t find anything cheaper at least you know that and you won’t be wondering in the months to come.

In summary
Many of the big insurers add a clause to all of their policies which states an automatic renewal will occur unless you personally phone up and cancel it. This means that if you do nothing about it, your insurance cover with them will continue indefinitely. This is undoubtedly the easy option but it often isn’t the cheapest. Compare different quotes a few weeks before the policy ends and see how much money you can save. Then just phone your current provider and give them the bad news – they may even offer to match your best quote in which case you win all ways.