How to Compare Your Car Insurance at Renewal Time
When your car insurance coverage is about to expire, you’ll be notified by your car insurance provider of the ending date and potential actions you can take. One specific question they’ll raise is whether you’d like to continue insuring your vehicle with them or not.
January 8, 2026
This matter isn’t the kind of thing you want to agree to without a second thought. At renewal time, your premium, excess, insured value, and coverage add-ons may have changed due to your driving history, claims history, or factors beyond your control. It could increase or decrease depending on these factors above.
As this is the case, this time of the year is one of the best chances to evaluate whether you want to continue with your current insurer or look elsewhere. Your car insurer will offer you a quote for the next year’s monthly premium, and you can decide from there whether the value posted meets your standard.
That being said, it can be quite a challenge comparing car insurance policies and figuring out the best one for you. Is it worth switching to a new car insurance provider? Are you better off sticking with your current one?
If you’re in that dilemma, then you’re in the right place. This article will outline key considerations when comparing two or more car insurance plans, whether they’re a continuation of a previous plan or a new insurance provider.
Let’s jump right into it!
Comparing Car Insurance Policies: 4 Things to Know
It’s critical to first know what may differ between your old policy and the newly proposed one.
This ensures that you’re fully aware of what may differ between the two policies—giving you a full glimpse of the value you’re expecting or missing out on by agreeing to the new renewal offer.
There are a few critical things to watch out for when making a comparison. Here are these factors in greater detail:
1. Premium Charges
The most notable difference that you’ll be met with is the difference between what you paid last year and what you’re expected to pay with your new policy.
Premiums can increase based on several factors, like your age, your vehicle’s model, the driving conditions, your claims history, and your own car insurance coverage choice.
On top of that, the company may even increase premiums because of operational reasons on their end. Inflation and changing market conditions can also cause insurers to adjust their premiums accordingly.
As this is the case, it’s crucial to factor in the newly proposed monthly premium amount you’re expected to pay to keep your insurance policy. If they have increased the premium, check if the cover is at least increased alongside it. Or determine if it’s acceptable for your set of circumstances.
If there’s no substantial increase in the coverage but a substantial increase in the monthly premiums, it may be worthwhile to downgrade or switch to a different car insurance plan.
In any case, if the new price you’re expected to pay each month is far beyond your means, then it’s within your right to cancel the plan and look for a new car insurer. Consider reading more
renewal time car insurance tips
here for more information on the renewal process.
2. Car Value
Another key area to compare is your car’s insured value. The policy will estimate your car’s worth based on its age, condition, and ongoing market prices. This value will be laid out to you on the submission of the new contract, and if you’re in agreement with it, then you can sign and enter this new policy.
Typically, the car value will drop during renewal times. This is a normal course due to the
nature of depreciation. That said, the rate at which the car’s value drops can differ, so you can call the shots whether the price the insurer estimates your vehicle aligns with what you believe is its actual worth.
3. Car Excess
Another key consideration is the excess amount, or the amount you’re to pay before the insurer formally issues a payout to the relevant department as part of their claiming process.
Excess is largely a circumstantial matter. Some people want a high excess to score lower premiums, whereas others want a low excess because they perceive less risk when driving their car.
In any case, a car insurer will formalise a new excess at the start of a new contract. It’s important to compare policies with both the premium and excess in mind to ensure that you’re still retaining good value in this contractual agreement.
4. Coverage, Add-Ons, and Exclusions
You should also be looking at the changes in your insurance coverage as a whole. Is your insurance provider offering the same coverage amount as last year’s? Are they retracting or adding new add-ons to this new contract? How about exclusions?
You can find these additions in the product disclosure statement in your renewal summary email. If you’re paying more for adjusted conditions that don’t work in your favour, then you may consider opting out of the contract and looking for other insurance providers instead.
Conversely, if the conditions look similar to last year’s or are even better, then you’re free to continue with the renewal.
How to Renew Your Car Insurance
Once you’ve made your decision to renew your car insurance, you can then start formalising it as soon as you’ve received the first renewal letter.
Here’s what to do, in order:
- Confirm the policy end date. This is to ensure that you won’t leave a gap of time where your car is left uninsured.
- Review the terms of the renewed offer carefully. If it’s to your liking, proceed with the renewal.
- If you need to make any updates to your personal and car details, then contact the insurer about these changes.
- Decide the level of coverage you want to get this time around. If you want to retain comprehensive coverage, for instance, then stick with it.
- Confirm the renewal details and pay before the expiry date. This includes the premium.
- Remind yourself about next year’s renewal date. This is so you can stay ahead of it and be organised with your finances.
By being methodical with this process, you can smoothly transition into your new car insurance plan. Of course, this is assuming that you’re fine sticking with your current insurer. If not, then you’ll have to vet and look for another local car insurance provider to keep your finances in order.
Signs to Switch to a New Car Insurer
From poor customer support to diminishing value, there are a few signs that it could be time to switch to another car insurer. Here are some of the ones that may push you in that direction:
- The premium increases beyond your ability to pay
- The insured value is dropping
- Excess is higher than you can pay
- Coverage or excess is reduced
- Poor customer support
- Unsatisfactory claim handling
- Better deals elsewhere
We hope that we’ve covered enough to help you make a better decision for your next car insurance policy during your upcoming renewal period. All the best in keeping your finances safe!
