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Car Insurance and Auto-Renewal

Compare car insurance quotes now before you auto-renew to make sure you're not left out of pocket.

Last updated: 04/08/2021 | Estimated Reading Time: 3 minutes

Auto-renewal means your car insurance company automatically renews your car insurance policy when it comes to the end of your fixed-term contract, usually for the same length of time as your current contract.

While there can be some benefits to automatic renewal, the best prices are almost invariably reserved for new customers, and so it's always a good idea to shop around for a new policy when yours comes to an end. Read on to find out more about what you should do when your insurance renewal date approaches.

In This Guide:

How do I know if my policy is set to auto-renew?

Most car insurance policies will auto-renew unless you tell your provider that you want to cancel. You should be sent a renewal notice by your insurance provider between 14-30 days before your policy is set to expire.

What happens if my policy does not automatically renew?

It is always worth checking with your current insurer to see what their renewal policy is, however. If you work on the assumption that your policy will auto-renew and it doesn't, you may find that your cover lapses, in which case you'll be driving illegally.

What should I do when my renewal date approaches?

As your renewal date approaches, you should start shopping around for a new policy. Loyal customers are not rewarded by car insurance providers, and those who leave their policy to auto-renew invariably pay more than those who switch to a new provider. Often, when you let your policy automatically renew, you'll end up paying more for your premiums, while receiving the same level of cover. Even if they don't, there's a good chance you'll be able to find a new, cheaper policy elsewhere.

How to stop your car insurance policy from auto-renewing

It's best to let your current insurer know that you want to cancel your auto-renewal as soon early as possible. Once you've found a new policy to switch over to, get in touch with your insurance provider and request to close your policy at its expiry date.

If you leave it too late and the auto-renewal kicks in, you'll still be able to cancel but you may be liable to pay for the brief period during which the new contract was active, and may also be charged an admin fee to close your account.

Are there any good reasons to auto-renew a car insurance policy?

We've outlined why we advise that you don't set your policy to auto-renewal, but there are of course some reasons why people may still opt to.

Namely, it's easy. Finding a new policy isn't hard, but it does take some time which, let's face it, is precious to all of us. Getting an auto-renewal policy is just easier. You pay for this convenience though.

It's always worth shopping around when your contract is coming to an end even if just to compare new prices with your renewal prices. If you do decide to stick with your current provider for simplicity's sake you're free to do so, but it's helpful to know what's on the other side of the fence.

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