One out of four Singaporean drivers chooses to renew their car insurance automatically. Doing so might not be the best idea if you want the cheapest car insurance. Yes, it may be convenient, but sometimes, there's a price to pay for said convenience.
Here are four reasons why you shouldn't auto-renew your insurance:
- Your insurer might have new (and cheaper) car insurance promotions
- You can get cheaper car insurance quotes from other insurers
- Your car insurance renewal fee gets more expensive
- You don't get to negotiate for the best car insurance plan
Don't opt out of your automatic car insurance renewal just yet - read more to find out if these reasons are important to you.
1. Your insurer might have new car insurance promotions
With every season, there are changes - this applies to car insurance plans too. Your insurer may come up with newer policies with better and cheaper coverage.
Even though your current car insurance may seem like the best one when you bought it, your insurer may come up with an even better plan for the following year or any other year after that.
2. You can get cheap car insurance quotes from other insurers
Since every insurer focuses on different benefits, you can look forward to exploring their cheap car insurance plans and promotions - no one said you had to stick with the same insurer.
Take a couple of minutes to compare car insurance quotes. You might just find something that suits your needs and economically sound too! It's good practice to compare at least three car insurance quotes before you settle for one.
If it's too troublesome to source for individual quotes, you can always compare 12 car insurance companies in one shot!
3. Your car insurance renewal fee gets more expensive
Your insurer may weigh risk-factors differently each year. These are
Let's just say it's not a great feeling to find out that you're paying more than what you expected, more so for intangible products like car insurance. Insurers are not obligated to inform you (until you get the auto-renewal bill) that your premiums have increased.
Likewise, you as the customer are not obligated to auto-renew your car insurance. Be smart!
4. You don't get to negotiate for the best car insurance plan
If you've opted out of the automatic renewal arrangement, you'll receive a renewal reminder before your policy expires. Here's where you try to negotiate for cheap car insurance, by asking your insurer how you can lower your premium.
For instance, you can set a higher policy excess and pay a lower premium price. You may be putting yourself at higher financial risk on the roads, but if you're a safe driver, the financial risk won't be as high.
Plus, in the event that you won't use your car as much the following year, you can request for your insurer to factor that in. The less your car is on the roads, the less risk you're at of getting into an accident, right?
Not auto-renewing your car insurance is the best insurance
If the premium for that cheap car insurance you bought the previous year has gone up, it might not be the best for you anymore.
Drop that insurer like a hot potato in your hands and ask yourself if the convenience from auto-renewal is truly worth the premium you're paying for - don't be afraid to try something new.
This article was first published in sgCarMart.