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Review or renew? Why your car’s cover renewal date needs to be in your 2019 calendar

5 min read
26 Jun 2019

Ever left the house and thought, ‘Did I forget to turn the stove off’?

That’s how you should feel when it comes to your annual car insurance renewal.

Why? Well, as a responsible adult it’s something you should check regularly. Plus, you should ensure your policy is still fantastic value; rather than a (metaphorical) fire hazard.

However, too many Aussies continue to let their policies roll over year after year. According to a survey conducted by PureProfile* in 2018, a massive 89% of Aussies let their car insurance roll over from the preceding year, instead of shopping around for a new (and potentially better-value) policy.

Worse still, 81% of surveyed Aussies admitted the cost of their car insurance goes up every year.

Many of these Aussies have been with the same insurer for more than two years, which means they’re stomaching higher prices for little upside.

In short, more than four in five Aussies have forgotten to turn the stove off.

* Survey conducted by PureProfile on behalf of Compare the Market, 1,000 respondents (2018).

Why should we review our car insurance each year?

No one likes paying car insurance, and no one likes paying more than they need to. While car insurance can be relatively cheap, it can be prohibitively expensive as well. It depends on a massive number of variables.

However, one that we will focus on is value.

Each year, your car will typically be worth a little less money, thanks to depreciation. With a car that’s worth less, you might expect it to cost less to insure, right? Not necessarily.

In fact, you may stay with the same insurer year after year, and the premium doesn’t change much at all. Too many of us may not be motivated enough to switch until our premiums rise past our own financial breaking point.

A couple looking at bills in the kitchen

So, when you receive a letter towards the end of the 12-month contract between you and your car insurer, pay attention to the details. You might be stung by a price rise and be no better for it.

Furthermore, if you add any aftermarket parts like a new stereo, you’ll want to update your policy sooner rather than later, as you might not be covered for it if something happens to your new subwoofer.

If you ever need to make a change to your car insurance, it pays to get it sorted. It’s essential to make sure you’re getting value for your money and that your car is adequately covered.

‘Can I get better cover?’

Your car insurer likely won’t tell you if there’s a better offer, but we might be able to.

It’s so easy to check by using Compare the Market to review different policies from our panel of providers side-by-side – premiums and all! You may even find the price you’re paying right now is one of the better options available, but at least you will have checked.

It might seem like a hassle if you normally just renew your car insurance every year, but if you could save money by comparing your options, why wouldn’t you?

Try it today by using our comparison service.

A car outside a barn

“You might be stung by a price rise and be no better for it.”

Let’s put this another way: there are plenty of other expenses that go up the longer you wait. Just like car insurance premiums, it pays to get on top of them as soon as possible.

Wait, what else becomes more expensive over time?

  1. Christmas presents. A bunch of stressed out Aussies all vying for the same products (think Jingle All The Way, but sweatier) is a recipe for holiday madness. As such, why not get your Christmas shopping out of the way sooner? For example, do your shopping during the end of financial year sales, shop the bargains, and chuck them in the closet for December. You’ll save yourself a world of grief.
  2. Leaky taps. Let’s use a simple allegory here: a leaky tap starts as a minor annoyance. You’re reasonably busy, most of the time you don’t even realise the tap is dripping! But then you get your water bill; it’s gone up ever so slightly. Next month, the dripping increases in intensity. Before you know it, the house is underwater! Likely? Not really, but the longer you leave a leaky tap, the more damage it can do to your home. It can cause mould, and damage the walls and paint, requiring a professional to come in and fix it. This is one thing you don’t want to throw on the back-burner.
  3. Unique sets of wheels. Your car may be a labour of love that you hope to maintain in the long term, but that labour can get harder as time goes on. For example, as manufacturers stop producing parts, those parts become more difficult to source. You may have to rely on aftermarket replacements in the future; good luck sourcing replacement parts for a Ford Cortina! If something goes wrong, it might become more expensive to fix the car than buying a new one.

Your ability to save is up to you! If you can save yourself some headaches in the future, why not act now?

Two women in a convertible car

It’s the same with our car insurance. It doesn’t cost anything to compare, so what’s stopping you?

Why switch car insurers?

In 2018 Compare the Market helped 20,555 Aussies a week, on average, compare cover for their car. Switching car insurance can bring you multiple benefits:

  • You could be missing out on some savings on your wheels if your car insurance keeps going up every year. Switching insurers can potentially help you save money.
  • If you’re not satisfied with your insurer, don’t get mad – compare policies and see if you can find a better deal.
  • You might not just save money, but could potentially find better value if a new policy has more benefits than your current one.

If you’re not being rewarded for being a long term customer, or are just after some savings in your household budget, it might be time to switch insurers.

That way, you’ll get to put money towards the things you really want.

Our free car insurance comparison service provides you with different policy options from a range of Australian car insurance brands. You can compare our provider’s policies side-by-side and purchase insurance all in the one place.

It only takes a few minutes and might help you find better value, so you don’t need to worry about leaving the metaphorical stove on.

Did you find this article interesting or helpful?

Written by James McCay

James is a devoted husband, father, animal lover and history buff (particularly medieval history). He studied Creative and Professional Writing at QUT, and is often buried in a book. James also enjoys historical re-enactment, spending time with his dogs, and making furniture out of reclaimed wood. He hopes to make a positive difference for readers through his writing.

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