Insurance Renewal Tips to Save You Money

1insurance renewal tips to save you money - shieldwise
by shieldwise

Us as human beings love to relax and naturally, we do not want to worry too much. I mean why take on the unnecessary headaches for extra stuff, such as insurance every year. Since we can be too lazy to pay attention to detail, the insurance companies are clever enough to use our shortcomings against us.

There is always an option for you to auto-renew with your insurance provider, most people trust blindly and opt for the auto-renewal. They make this decision without thinking about the premiums or how much it is going to cost them.

All they care about is how convenient the auto-renewal process is. But this convenient insurance renewal process can come back to bite your wallet.

There is a much higher possibility your insurance provider is charging you more as you did not take a look at the current rate for the insurance premiums. Chances are you are paying much more for this term of your insurance than you should.

To help make knowing convenient for you we have come up with this article on some insurance renewal tips to save you money.

Insurance renewal tips

1. Best time for renewal

Think about if your current car insurance policy was ending at the end of this month. So, should you wait for the policy to end or should you look to renew? The right time to renew your policy is about a week before it ends.

This is important because of certain factors. If your insurance ends today and you are looking to renew today, the insurance providers already know your hands are tied. Because you will not be able to use your car after the insurance policy expires.

To avoid not being in a place where the insurance companies have the upper hand on you, you can start shopping early for your insurance.

This gives you time to calculate your premiums, compare with several insurance providers, and choose the one which is best for you. For renewal, the earlier you start shopping for your renewal process the better it is for you.

2. Stop auto-renewal

You must pay proper attention to the auto-renewal of your insurance policy. Don’t you think it is a lot more convenient? Why would your current insurance provider do all the work and will just ask for your agreement on the new policy?

The chances are you will be paying a much higher premium than what other insurance providers would charge you. Your insurance providers know you are not paying enough attention when you are just auto-renewing. They use it to their advantage and charge you more.

Do not get blind-sighted, always keep your eyes open and shop around to see what other insurance providers have to offer. So, you can make a more informed decision on which insurance provider to go with.

3. Pre-renewal deposits

Most customers are not aware that some insurance providers will charge you a month in advance for a pre-deposit. What is this pre-deposit for insurance renewal? It is another way of your insurance provider trying to secure your business for another year.

For example, your current insurance policy is about to end next month. The insurance provider will charge you in advance for another month. This amount is an advance payment if you decide to stay with them for another year. If you stay, this amount will be subtracted from the next year’s premium.

This can be a bit confusing if you are not aware, so when you are nearing an insurance renewal just ask your insurance provider if they have charged you a pre-deposit. Communicating with your insurance provider will help you be up to date with your insurance policy.

4. Cost

This is perhaps the most important tip on this list. You should always consider the cost of your insurance premiums. Price is the one thing insurance consumers worry about. If you find an insurance provider who is offering a lower premium, often consumers will shift to their policy.

One thing to understand, insurance providers will never offer a policy where they do not have the upper hand. At the end of the day, insurance providers are doing business and they want to make a profit.

So, think of your insurance renewal as a business deal where you do not want to be taken advantage of by the other party.

Hence, make sure you do your research, compare different insurance policies on different sites. So, you know you are getting the best possible insurance policy available.

Follow these tips to help save you money and if you have some more tips to share with us, email us!

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Categories: Insurance Tips