Published: 04/09/2007

The cost of car insurance has been getting more expensive and with claims for accidental damage and personal injury on the rise, the cost of insuring your car is likely to increase year on year. As your car insurance renewal date approaches you can expect to receive a renewal notice through the post from your current insurer. If you do nothing your insurers will automatically renew your insurance policy and charge you for the privilege.
If you do not wish to renew your car insurance with the same provider, you must inform them, otherwise they will roll over the policy for another term. Although this may appear to be unfair the insurers argue that they are maintaining your legal obligation.

Many people probably take the easy option, do nothing and carry on year after year with the same insurer, usually paying more than they need to. This really is equivalent to burning fivers except that you are also lining the pockets of the insurance companies. The concept that being a loyal customer will bring its own rewards is usually not the case. Most insurers concentrate on discounts to attract new customers and forget all about the customers who have been loyal and stay with the same company year after year.

If you are one of the many people who let their renewal pass each year without looking around for a better deal then here are a few examples of how you could be missing out.

1. Change of Circumstances - Each insurer specialises in a certain type of driver so when your renewal date arrives your profile may have changed. For example a change of address or employment, new claims or convictions. This will make some providers more or less competitive for you compared to last year.
2. Compare like-for-like - Although price is probably the most important factor you should also ensure that the policy meets your individual needs and circumstances. Every policy gives a different level of cover which can be matched to your own requirements. When looking around for an alternative quote make sure you compare policies on a like for like basis.
3. Resist pressure to change - Never allow yourself to be pressured into buying a policy. Although you will probably want to get it over and done with as quickly as possible make sure that you know what you are buying and check that it fully suits your own circumstances. If it turns out that your existing insurer is offering the best cover at the best price you shouldn't have any reason to switch.
   Loyalty is not always repaid – Most insurers reserve their best rates for their new customers which means that you can be penalised for your loyalty. You should never just accept the renewal price from your existing insurer without comparing prices with other insurers.
    
4. 
   Here at Moneynet we've teamed up with Insurancewide to offer a motor insurance comparison tool which not only allows you to search 98% of the market in one go but also matches your profile with those insurers who are most relevant for you. They do this by analysing the results of thousands of searches, and looking at things like customer service and how well the insurer web sites work. This means that you not only get the best price but also the best match to your own individual needs and circumstances.