Insurance auto renew is a system introduced by insurers where any insurance policy that we sign up for will automatically renew for another year when the first paid for period of time comes to an end. There are both pros and cons to having auto renew insurance.
Pros of auto renew
It is convenient – you don’t have to worry about renewing your policy as the policy continues without you taking any action.
You won’t be without cover – there are no gaps in cover with insurance auto-renew, which means you’ll never fall between two cover periods.
Cons of auto renew
Prices often increase automatically – if you’re auto renewing then you don’t have the option of shopping around for a better deal.
No disclosure can prevent a claim – if you auto-renew but your circumstances are different, an insurer may decide that changed circumstances were not disclosed at the time of the auto-renewal and refuse a claim.
You can’t undo it – if you didn’t realise you had auto-renew and you take out a second policy then you will be doubly insured with no way out of either policy after the cooling off period.
Loyalty doesn’t pay – sticking with your insurance provider doesn’t necessarily guarantee the lowest prices or the best deals.
If you make a decision to auto-renew then make sure you compare home insurance prices to keep an eye on whether you’re still getting the best, cheapest deal.
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