With January coming up around the corner, you may find yourself considering your finances while prepping New Year’s resolutions. Is your car insurance renewal somewhere on this mental Excel document?
If not, consider building in time to take a good look at your car insurance in 2021. A little tweak here and there can have make a noticeable financial difference. As your policy period renews you may expect an increase to your premium, but this is not always a given.
Read on for more…
1. Make a saving on your car insurance renewal
Many insurers’ systems are limited in their ability to track your claims history. For example, if your claim is dated six years back the system will recognise only the claim circumstances, not the date (and presume it was a recent claim). Then it will price your premium accordingly.
To overcome this, you should proactively contact your insurance provider whenever you reach a no-claim milestone. Doing so will result in your receiving a claims free discount, if your insurer has one. Bonus!
Why the discount? Because a driver who claims less is considered lower risk and therefore deserves a lower premium.
2. Use your insurance roll-over to your benefit
Should you let your car insurance roll over? You can, but insurance is about the wellbeing and safety of your assets (and therefore you). Think twice about simply letting things roll.
Communication is the key to a policy that continues to be tailored to your ‘now’. It’s in your interest to speak to your insurer at each policy renewal period. A good insurer ensures the policy suits their customer’s current needs, rather than what their situation was in the past.
This is why PD Insurance contacts all our customers around the time of their car insurance renewal. We don’t want the onus to be on you and we want to make sure your details are still accurate – which means your coverage will be accurate.
We also take the opportunity at this time to mention potential discounts and important add-ons, aka the potential for fuller insurance coverage for greater protection.
3. Update your information
Sometimes people want to call a friend to chat but decide not to because they don’t have anything new to tell. Don’t treat insurance this way. Even if you still drive the same car. Even if you still travel the same route. And even if you still have the same garage.
Make a quick call to your insurer, use their online portal or send an email to update your basics. If nothing else, it’s important to review your car insurance renewal to ensure all your details are correct and up to date. Just as you would your driver’s license.
This also gives you an opportunity to assess if there are any changes you may have otherwise overlooked. There could be just one thing you’ve changed about your circumstances that makes a difference to your premium… which leads us to…
4. Milestones may influence your premium
While it may come as a surprise, milestones in your job, lifestyle, and relationship can also increase or decrease your premium.
Here are some examples:
- Changing your relationship status – Your personal relationships can greatly influence your driving status. For example, if you leave a relationship where you shared a car, you may become the only driver. Similarly, a couple who’ve just had a child might decide to get two cars rather than share. Or perhaps you have a son or a daughter who has their first car and will no longer be sharing yours. Each situation can result in you being the only driver of your car, making you eligible for an exclusive-driver discount like PD Insurance offers.
- Moving to a new home – A new home also means a new postcode along with a new overnight location for your car. This could be deemed more secure by your insurer, which could mean a lower premium. Your new neighbourhood will also alter the distance you travel to get to work each day as well as which routes you drive. Which might be a factor in your premium calculation. If your premium decreases, that obviously means money saved. If your premium increases, you’re paying more but you get the cover you need. Regardless, it always pays to be honest about your current situation when you’re locking in insurance for the year ahead. Otherwise you might not be covered in the event of a claim.
- A new salary – An increase in your salary can allow you to make better long term financial decisions. For example, you may choose to pay your annual premium all in one go rather than month-to-month, qualifying you for an annual payment discount. As a result of your upfront investment, you save money in the long run. And you can set and forget your car insurance for another year. Unless your circumstances change, of course.
- Becoming middle-aged – OK, we’re joking here but if you were under the age of 25 at the time of your last car insurance renewal and you’re now 25 then double check your insurer has logged that milestone. People aged under 25 years are statistically riskier drivers. By that we mean they’re more likely to have serious accident so their insurance is priced accordingly. If you’ve reached the ripe old age of 25 years you can expect a lower premium. As long as you haven’t had an accident in the past year and your other circumstances haven’t altered.
If any of your living circumstances have changed, let your insurer know, even if it’s outside your car insurance renewal period. You may very likely be paying more for your policy than you should be.
Talk to your insurer just in case– you may be eligible for a mid-term endorsement, where you get money back on your premium due to changed circumstances!
5. Choose the right policy for you
When you renew your car insurance, speak to your insurer so you can choose the most suitable policy. Last year you may have only been able to afford third party property damage but this year you might have enough for the better protection offered by comprehensive car insurance.
If that’s the case and you’re with PD Insurance you’ll score benefits like a new replacement vehicle if your car is under 12 months old, in the event of theft or accident. Plus emergency repair up to $500, towing, windscreen repair and more. And of course, there’s all those optional add-ons that you might benefit from, like roadside assistance. When you know you’re well protected, insurance adds value to the quality of your life through peace of mind.
Car insurance renewal – over to you
Have you been dreading or ignoring your imminent car insurance renewal? Or maybe you just renewed your policy, and the process was a dream. Or a nightmare? Tell us all about it, we’d love to hear your story in the comments below.