Is your car insurance loyalty costing you?

When did you last take a close look at your car insurance renewal?

For many Australians, letting a policy automatically renew is an easy option. But recent ASIC findings suggest staying with the same insurer may not always mean getting the best price.

Automatically renewing your car insurance might be convenient, but it’s still worth checking what you’re paying.

A recent report from the Australian Securities and Investments Commission (ASIC) found that car insurance premiums are rising. It also found that long-term customers can end up paying more than new customers.

The findings are a good reminder to review your renewal notice closely. Check what has changed and ask questions before accepting the new premium.

For many drivers, a few minutes spent reviewing their policy could make a difference.

Your renewal notice doesn’t have to be the final word on what you pay.

According to the ASIC findings supplied for this article, nearly one in three people who contacted their insurer before renewing received a lower premium without changing their cover.

That makes it worth reviewing your renewal rather than simply letting it roll over. Check the new premium against what you paid last year and look for changes to your cover.

If the price has increased, contact your insurer and ask why. A simple conversation could help you understand your options before you renew.

Comparing your options can make a real difference.

One Melbourne driver featured in the Herald Sun received an unexplained increase in her car insurance premium. Instead of automatically renewing, she shopped around.

By switching insurers, she reportedly saved $600.

Price isn’t the only factor to consider. When comparing policies, take the time to look at the cover, excess and inclusions too.

A better-value policy should still give you the cover and options that matter to you.

The Choice of Repairer can give you more control over who repairs your vehicle after an accident.

Depending on your policy, you may be able to choose your preferred repairer rather than one selected by your insurer. This can give you more say over where your vehicle goes and the repair standards you expect.

When reviewing or comparing car insurance policies, check:

• Whether Choice of Repairer is included
• Whether it costs extra to add to your policy
• What conditions apply when choosing a repairer
• Whether there are restrictions on your choice
• What repair standards and parts are covered

A cheaper premium can look appealing at renewal time. But price is only part of the picture. Knowing what your policy allows can help you choose cover that gives you the level of control you want.

After an accident, choosing a repairer you trust can give you greater confidence in what happens next.

Having Choice of Repairer in your policy may give you more say over where your vehicle is repaired. It also means you can consider the repair standards that matter to you.

Choosing your own repairer can help you:

• Have more control over who repairs your vehicle
• Choose a repairer you know and trust
• Ask questions directly about the repair process
• Understand the standards being used for your repairs
• Get support while navigating your insurance claim

Checking your policy before an accident means you can understand your options ahead of time. If you need to make a claim later, you’ll have a clearer idea of what your cover allows.

Before accepting your next renewal, take a few minutes to review the details. Compare the new premium with what you paid last year. Check your excess, inclusions and whether your level of cover has changed.

If the premium has increased, ask your insurer why. You can also compare other policies to see what options are available.

Remember to look beyond price. Check whether Choice of Repairer is included and understand any conditions that apply. A quick review before renewing can help you make a more informed decision about your cover.