Things to Consider when Deciding to Renew Your Policy

As you probably know, A car insurance policy is not a lifetime deal. However, for a variety of reasons, not all policyholders renew. Some decide to look for new insurance providers, hoping to get better deal. In extreme cases, some individuals simply cannot afford to drive anymore. In any event, Renewal time is always a good oportunity to weigh your options.

 

Factors to consider

Purchasing or renewing insurance is not a one-stop deal. It takes time to decide which insurance policy is best. Start considering whether to renew your policy or not a few months before it expires. If  'all is well', obviously you will renew it. The question now is whether or not you should renew it with the same company. The advantage in subscribing to the same insurance provider is that many companies offer loyalty discounts. You can save up to 20% off your insurance cost when you choose the same company. However, the insurance industry is very competitive - and you might be able to find better providers within your province or online.

If you're not renewing

If you have been using the same car for 20 years or more, you might consider buying a new one. Older cars are more prone to repairsand accidents, and often times your annual insurance fees exceed the value of your vehicle! The 'cash for clunkers' program is already in decline, but you can still sell your old car to secondhand dealers. You can use the cash you earn to provide you leverage or a down payment on your new car purchase.

All this being said, sometimes it's best to stick with a company you know and trust - after all, in the event of an accident, it's best to know you, your loved ones, and your possesions are looked after.