Auto Insurance Renewal

Mar 3, 2020

Is your car insurance up for renewal? If you’re not sure what to do for your auto insurance renewal, let us give you some pointers.

What Is Car Insurance Renewal?

For those that are new to insurance, a car insurance renewal is the date on which your policy ends and starts again.  Insurance policies are mostly on a one-year renewal term, although some may be six months or even one month.  The vast majority of auto insurance renewals are one year.  For example, if you start your insurance policy on December 1 this year, your renewal date will be December 1 next year.

What Happens at Car Insurance Renewal Time?

Well, a bunch of things. Your renewal of auto insurance happens automatically.  You will usually receive your renewal at least 30 days prior to the renewal date in order for you to see any price changes and to give you time to shop around if you so desire.  You will receive a letter of notification in the mail or even perhaps via email if you are signed up for it.

Rate Increase when Auto Insurance Renews

Renewal time is also a chance for the insurance company to update any price or coverage changes they have made in the last year.  They cannot change your terms during the course of the policy year, but they are allowed to do so on renewal.

It is very normal to see a price change on your renewal.  Your price can either go up or go down.  If your driving record has gotten better, you might see a hefty decrease.  All things being equal, rates tend to generally increase over time just as all things do.  If you see an increase, it is essential for you to call your broker to see if any further discounts can be added which you may qualify for.

What to Do at Renewal Time

Keep Insurance - Should you decide to keep your policy when your car insurance renews, you are not required to do anything except keep paying your bill. It will automatically renew.

Cancel - Found a better rate elsewhere? You may cancel with your current insurance company at renewal without any penalties. 

Declined by Insurance Company - Also at renewal time some people have their car insurance renewal declined by the insurance company.  This occurs when the client incurs either tickets, accidents, or incidents of non-payment.  Any combination of these three factors as well as some others could result in the insurance company cancelling your renewal.  The insurer will give you at least 30 days notice by registered letter in order to give you time to find another company for your insurance.  If that happens, please contact us because we can help.

If you have been cancelled on renewal by your insurer, this can often be a shocking event.  You might expect a large price insurance but have nowhere to go and don’t know what to do.  Hopefully you’ve found your way to this blog post.  If you’ve been cancelled, chances are that you are now in the “high risk” market for a period of time.  This doesn’t mean you’re a bad driver; it just means you need to rehab your record for a few years until you are ready for the best prices again.  The best thing to do is stay calm and call an expert who can explain all your options to you.

What Else Happens on Your Car Insurance Renewal?

Well, it is a time for your broker to step up and show what they can do for you.  At a company like Begin insurance, where we have 17 insurance companies to offer. We can shop the market for you to see if there is better pricing and coverage.  We may reach out to you to offer an even better rate than you are currently paying.  Do not be surprised if we call you to save money.

Lastly, renewal time is a great time to reflect on your overall risk in life.  Is anything in particular causing you anxiety?  Need more peace of mind?  Is that old dead tree in your backyard a ticking time bomb?  Are you worried about cyber security and identity theft?  Worried about climate change and flooding?  Are you on a fixed budget and need to make ends meet?  Help us to help you alleviate risk in your life.  We are here for you on your renewal to make life easier. Give us a call at 1 (844) 774-6340 or get a quote now using our online calculator.

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Thanks for reading our article on auto insurance renewals. Still searching for more information? Check out other insurance products that we offer:

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