Insurance auto-renewal – what it means

Last updated by on June 7th, 2022 and verified by The Parkers Team

Does motor insurance automatically renew?

Some motor insurance policies will automatically renew when your current contract expires. Within your contract you may find an auto-renewal clause which states that your policy will continue for another 12 months if you do not give notice of cancellation. If you do not give notice of cancellation to your insurer before the policy start date, then your policy will be renewed.


How do I know if I have an auto-renewal clause in my policy?

When you first get your insurance policy you should read the terms and conditions. Ensure that you go over them with a fine toothcomb and sniff out any clauses you didn’t expect to see or that you might not understand.


If we all did that then some of us would see that our motor insurance policies have an auto-renewal clause in them. Unfortunately, a lot of people don’t check. Instead, most of us leaf through and scan terms and conditions before slapping a paw print where we’ve been told to slap one.

Unfortunately (again), failure to read something in a policy is not a legally accepted argument. If you sign and agree to an auto-renewal policy, then you have an auto-renewal policy.

Your policy will say if you have an auto-renewal clause so read it carefully. Alternatively, you can contact your insurer to find out.


Why do insurers have an auto-renewal clause?

Automatic renewals (or auto-renewals) are not a new thing and have been around for a long time. Insurers would have an auto-renewal clause to help retain customers every year. However, due to it being illegal to drive a car without insurance, insurers have the auto-renewal clause to prevent drivers from driving without insurance.


How to stop your insurance auto-renewing

Your insurance company should inform you when your car insurance policy is due to be renewed. Typically, they will reach out to you around 4 weeks before your policy is due to be renewed.

Your insurer will offer you a renewal price, this is sometimes more expensive than your current premium. They will also outline your No Claims Bonus (NCB) as well as state how you can stop your insurance policy renewing if you do not wish it to.

If you’re interested in comparing prices again to see if you could save any money by getting a new insurance policy, this is a good time to start your search as it gives you enough time to serve your insurer notice. But if you want to stick with your current insurer you could get in touch with them and see if you are able to negotiate a better price than the renewal price they have given you.

You will need to let your insurer know if you do not wish to renew your policy. This must be done before your policy renewal date.

However, if you miss the renewal deadline, you can cancel your policy within 14 days of the renewal date, which is known as the ‘cooling off’ period. During this time, you are free to cancel the product without any penalties. You may be charged for the time you are covered after the renewal as well as an administration fee.

You can compare prices using our online form to see if the renewal price you have been given is right for you and the cover you need.



When is the best time to renew my car insurance?

The best time to renew your car insurance or take out a new insurance policy is around 3 weeks before your renewal date. This is the best time to start looking for a good deal for your insurance.

You can search for a better price for your car insurance using a comparison website like It will save you time as we search for quotes on your behalf. Simply complete our online form, it takes just 5 minutes, and you could save on your car insurance auto renewal price.


Why is my car insurance auto renewal price more expensive?

Many people found that their car insurance auto renewal price will be more expensive than their current premium price, even if nothing changes. However, from January 2022 the FCA brought in new regulations that ensure new and current customers are treated equally. Insurers will no longer be able to charge renewing customers more than what they would be charged as a new customer.


However, to find the best price for your car insurance you should still compare quotes. The price of insurance changes every year depending on your needs, but insurers will no longer be able to charge more to existing customers for their cover compared to if they were a new customer.

Can I cancel car insurance after auto renewal?

As mentioned above, you will be able to cancel your car insurance policy within 14 days of renewal. This period is known as the ‘cooling off’ period and you are free to cancel your insurance. Although your insurer can charge you for the time you are covered with them, as well as an administration fee.


If you have gone past the ‘cooling off’ period, you may still be able to cancel your insurance policy. The best way to find out if you are able and the fees incurred is to contact your insurance company directly. They will be able to advise you of the process of cancelling your insurance policy after the ‘cooling off’ period.

Car insurance renewal quotes from

If your insurance policy is due for renewal soon, you can compare motor insurance quotes to see how competitive your renewal price is and if you can get covered for less. Alternatively, if you’d prefer to get a quote over the phone, you can call 0330 022 8814 and a member of the friendly team will be happy to help.


Who is mustard?

We are experts in insurance comparison, dedicated to helping you compare quotes online quickly and easily.

We search quotes from some of the UK’s leading insurance providers to help you find the right policy for you at a price to suit your budget.

Insurance as individual as you are

Compare Car Insurance Quotes