How rejecting auto-renewal could save you hundreds on your car insurance

Is it the time of year again when you are looking to renew your motor insurance? Before you simply tick the boxes on the letter you have doubtless received from your current provider, check the other options available to you.

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This is particularly the case since the Financial Conduct Authority (FCA) issued a warning that it will take action if insurance firms do not implement the rules it has introduced on transparency in policy renewal and encouraging clients to shop around for deals.

Since 1 April 2017, the FCA has attempted to introduce a different approach to renewals in the market, encouraging customer engagement at renewal time, improving the treatment of existing customers, and promoting competition.

It is not only car drivers who should be checking their policy payments but also companies that have motor trade insurance.

What is motor trade insurance?

If you have cars under your supervision, you will need insurance; to get the best price, you will have to shop around, comparing the deals on offer that best suit your business needs.

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Loyalty

Clients are increasingly aware that few companies reward loyalty; however, insurance industry numbers suggest that the cost of gaining a new customer is around five times that of retaining one. This would suggest that the companies should be trying harder to keep their customers rather than simply increasing their premiums by a set amount.

If your provider does not run a loyalty scheme, you really should be going to comparison sites to get the best deal. Many people do not ask about loyalty schemes and you may be missing a trick by not enquiring with your provider. Given their added costs outlined above, you may find a reduction in your premium is in order.

Underwriter

Once you begin this search, always be sure to check the status of the underwriter. If you have never heard of them, make sure you run a check against their record and ask your provider for details. Underwriters determine the risk of insuring your business and calculating the price you will pay.

With businesses in the motor trade, specialised experience is crucial. You need to know that your investment in your business is protected, so dealing with an experienced insurance provider will be crucial.

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