When your car insurance policy’s term expires, it’s up for renewal, and that’s when you’ll find out if your rates are going up. Here’s all you need to know about car insurance renewal.
As soon as you buy car insurance, you’re getting coverage for your car, which gives you a certain amount of protection for a predetermined length of time. Most car insurance policies last for six months or a year. After that, you’ll have to buy a new one.
However, you could also retain your insurance before it expires by renewing your policy. When your car insurance is up for renewal, you can select the kind of coverage you need, such as collision or comprehensive coverage.
It’s easy for many drivers to renew their auto policy, and it doesn’t take a lot of work from you to do this. Usually, the insurance provider will send a letter or an email when your policy is about to expire. Your insurance company may then automatically renew your policy or ask you to show that your basic information is the same before you can renew it again. Most of the time, you can do all this online.
You might have a hard time getting a new policy if you let your old one run out. This is called “nonrenewal,” and it means that your insurance company won’t give you a new policy at all. A lapse in coverage could also lead to higher premiums in the future.
How to Renew My Car Insurance Policy
Most insurance companies automatically renew your car insurance policy. It’s great if you don’t like to deal with paperwork, but it also means that your rates could go up without you even realizing it.
As we mentioned earlier, usually, your insurance company will send you a letter about renewing your policy a month before your current policy expires. This letter or email will contain information about your new car insurance rate, a new declarations page, and new insurance cards. Suppose you don’t do anything (and keep paying your premiums). In that case, your insurance provider will automatically renew your insurance policy, and new rates will apply when your policy is up for renewal.
Your rates could go up even if you haven’t had any accidents or had any issues on your driving record. Several factors determine your new rates. These include your driving history, age, and location, among others. They also take into account your state’s claim rates.
Suppose your auto insurance renews automatically, and you’re satisfied with the renewed rates. In that case, you don’t have to do anything except keep paying and get renewed insurance cards to keep in your wallet and your car’s glove box. Your car insurance payments will most likely keep going even if you cancel and start them again at the start of each policy term, so you don’t have to worry about that.
Depending on the company, you may have to agree to your car insurance renewal terms before you can keep your coverage. As long as this is the case, you’ll be asked to look over your information when it’s time for you to renew.
Reasons for Car Insurance Rates to Go Up
You’ll know about your new insurance rate when you get your renewal notice. Many things could have happened to make you pay more than you did before.
Insurers use a lot of personal data to calculate how much you pay for car insurance. If any of these things have changed throughout your policy, that can affect how much you pay. There may be several reasons why your car insurance rates have gone up, such as:
- You filed a claim, or someone filed one against you
- You caused an accident or got a ticket.
- You moved to a new ZIP code.
- The accident rate went up in general.
If your premiums go up when your policy renews and you don’t like the new price, you might want to look for a new policy. If you can get the same coverage for less money, it might be time to switch insurance companies. Start your search for your next car insurance policy by tapping the banner below.
How to Cancel a Car Insurance Renewal
If your car insurance is going to expire, but you are not satisfied with your current coverage, you could let your insurance company know that you don’t like your policy or buy a new policy that starts before your current one ends.
You cancel your car insurance policy when you don’t renew your policy. When it comes to doing it, your insurance company has a say in it. Some providers will let you cancel your policy over the phone, while others will ask for a letter that says you want to cancel your policy.
As you do it, note the date when your insurance coverage ends. If your insurance company doesn’t want to renew your car insurance coverage or if you decide to switch companies, you need to get a new policy, and you need to get it before your old policy runs out.
How to Get the Best Deal on Car Insurance
It’s the same process as when you first got insurance: You shop around for a new policy. Decide if you want to work with an independent agent or look for quotes on your own. You can get quotes from insurance providers online. But if you work with an independent agent or broker, you only have to fill out your information once, and an expert will help you choose from several different companies.
Consider how much coverage you need. We all have different needs and wants when it comes to our insurance policies.
Fill out the form: Not working with a broker? You’ll need to give basic information like your name, address, Social Security Number, and car VIN. You’ll also need to send in the declarations page from your most recent car insurance policy.
Get multiple quotes: You can obtain car insurance quotes from Way.com in under 10 minutes. During price comparisons, make sure you look at quotes for the same coverage amounts and policy tenure so you can compare apples to apples.
Select an insurance company: Look at reviews and ratings on rating sites to help you choose. Once you’ve chosen a company and bought a policy, you can cancel your old car insurance.
Is It Possible to Renew Expired Car Insurance?
Things can get a little complicated if you let your car insurance policy run out and want to get it back. When you do not renew your car insurance immediately, it means that you’ve had a lapse in coverage. That means you’re not covered when you’re behind the wheel. Remember to stay off the road until you’re back in the clear.
If you can’t get your old car back, it’s a good idea to look for a new car insurance plan as soon as possible. People who don’t keep their cars insured for long periods may have to pay more in the long run.
Renée Martin is a travel and car expert who focuses on road and air travel in the U.S. For the past 6 years, she’s been helping make driving and trip planning easier and budget-friendly for everyday travelers.
