Car insurance auto renewal is a highly beneficial activity that makes many a car owner breathe easy. Humans in general are a highly forgetful lot and remembering the renewal date that will arrive roughly 12 months later is just not possible for a majority of them.

Hence, emerged this solution that has had plenty of takers since its inception. All car owners are wary of the fact that if their insurance is found to be expired, they would not be able to recover their due damages in the wake of an accident and will be fined heavily if they get caught by the authorities. Auto renewal is the perfect answer to these concerns, and hence the huge demand for it.

However, everything in this world has two sides to it and car insurance auto renewal is no exception.

Flipside of Car Insurance Auto Renewal – Insured unknowingly forced to shell out extra bucks, losses adding up to billions

First things first – car insurance auto renewal is resulting in humongous losses amounting to billions of pounds. The matter has reached alarming proportions now and it’s high time adequate steps were taken to deal with it effectively.

Below, you’ll learn why car auto insurance renewal is now becoming counterproductive and causing serious financial damage:

  • Car owners are unhesitatingly agreeing to the price quoted by their insurance provider at the time of renewal. The new premium amount is generally higher than the previous one but this doesn’t really bother the insured as long as their policy is renewed sans any effort.
  • Insurers resort to the use of complex language while sending a mail or a letter to an insured around renewal time. The buyer of the policy mistakenly assumes that the same arrangement will continue, whereas the truth of the matter is they might not be recompensed adequately if they aren’t fully aware of the terms and conditions of their insurance and the cases that it covers precisely. However, the temptation to do nothing at all is hard to resist and the end result of it all is that virtually every car insurance policy holder who goes for auto renewal is paying nearly £100 more than what they ideally should.
  • Then there is the reluctance to turn the auto renewal option down. And even if someone wishes to quit it for good, the ensuing process ain’t that easy. The moment fines and all are levied, a policy holder willy-nilly decides to postpone their decision to renew their insurance for another one year.
  • Auto renewal unfortunately is preventing car insurance policy holders from getting a real bang for their buck. If they continue holding onto it, it is more out of inertia than by choice. This thing is really taking its toll on old drivers who are a bit hard up and aren’t that tech-savvy.

So now, there is growing murmur against auto renewal and the need for a change is being felt very strongly. Some positive steps are required in this direction and they include the following:

  • The previous price of the policy should be clearly mentioned alongside the new premium amount.
  • Any major changes such as elimination of breakdown cover too need to be highlighted specifically.
  • The policy must state in explicit terms that the price and cover would only be valid if the circumstances remained the same
  • The language used should be easy to comprehend.
  • There needs to be a cooling-off period as well during which a policy holder must be given the liberty to get their insurance cancelled for free.

Rymindr Usage – Apt countermeasure to stem the tide

Meanwhile, both insurers and the insured have to take to car insurance auto renewal in a proactive way if they really are to use it to their advantage and prevent it from becoming a loss-causing exercise. Rymindr, an ideal reminder app, can be the saviour of both. Car owners can use this app to be reminded about the renewal date of their insurance policy beforehand and be in a good position to either accept or reject the auto renewal option. They can have negotiations with their existing insurance provider or mull other options.

Insurance companies too can make optimal use of this app to ensure total transparency. By receiving and in turn sending timely reminders to their customers, they can keep attrition in check. Before auto renewal, if all the clarifications are done and policy holders are given a true picture of what lies in store for them, there is a strong likelihood that they might not abandon their policy midway.