Your renewal price explained

The price you get from your insurance provider when your insurance is due is based on many factors; individual details about you but also other factors outside of your control.

It’s why if you make any changes to your personal details, or your circumstances change that it’s vitally important to inform your provider as it can change your premium – it can go up, but it can also come down! Economic trends also impact your insurance costs such as inflation, car values, energy costs.

So it’s not as simple as you might think and it’s why we like to be as transparent as possible with you about the process and aim to make renewing your policy as simple as possible.

Key factors that can affect your premium:

Convictions/Claims

• If you’ve had an accident during your policy term whether it was your fault or not, it can impact the price you need to pay in the coming year.
• Driving convictions also matter, some insurers don’t cover for any convictions whereas others specialise in cover for those risks.
• ‘Risk’ is a term widely used in the insurance industry – it refers to the potential for a loss that an insurance provider agrees to cover under a policy.

Theft

• You may live in a postcode area that has seen a rising amount of theft, particularly of certain car models therefore the price you are quoted takes this risk into consideration.

Change in personal details

• If you move house or change your car, it can mean that your premium increases or indeed the price may come down. You may have moved into an area that insurers prefer not to cover risks in, or you move into a more affluent area where theft is low.
• Car makes and models also have associated risks – they may be expensive to repair, or more popular for theft or your engine size could be smaller if you choose a less powerful option.
• Other factors that also are considered when calculating your premiums are the miles you drive, your job type and whether you have a second job, are married etc. Believe it or not, insurers assess all of this information when they are working out your insurance price which is why it can take some time to get a quote in the first place. It’s not that they are nosey, it’s that they are trying to work out how risky you are to cover for the year.
• The best way to manage your renewal is to go into the app once you get your renewal reminder and have a look to ensure everything is present and up to date. It’ll mean when your price is ready to view and consider, it will be as accurate as possible allowing you to compare and contrast your options more effectively.

With us, you can simply renew in the app if you’ve no changes to make. If you do, just simply contact our team and they’ll be able to sort you out.