Renewing your car insurance should be a simple process. Your insurance provider will send you a letter in the mail or an email with a new rate. If you find the new rate acceptable, you can make an initial payment or pay the policy term in full. The process can become much more complicated in certain situations. Read on to learn how to renew car insurance.
How Do I Renew My Auto Insurance
Around a month before your current policy expires, you’ll receive a letter from your insurer regarding renewal, according to Progressive. This letter usually comes with information about your new auto insurance rates, a declarations page, and insurance cards with the new expiration date. If you don’t respond and change anything on your policy, your plan will renew automatically, and your new rates will be applied on your new policy’s start date.
Most auto insurance plans have an automatic renewal policy written in, which is perfect for people who aren’t fans of paperwork. However, your premiums may increase without your knowledge. If your auto insurance provider offers auto-renewal, renewing becomes as simple as it gets because you won’t need to do much.
If you choose to go with automatic renewal and you are okay with the new rates, you really won’t need to do anything except continue the payments and change out your old insurance cards. If your insurance payments are on auto-pay, they’ll usually just continue onto your next term.
Some insurance companies require their policyholders to update their personal information by signing a document. If your insurance provider needs a signature from you, you’ll be notified to confirm your personal information when the renewal date gets nearer.
If your policy does not automatically renew, you’ll need to contact your insurance provider to renew the policy. Processing a renewal is similar to underwriting a new insurance policy application. Autoinsurance.org found that everything is reassessed during renewal, and adjusters will look through all the same things they do when starting a new policy including:
- Drivers motor vehicle report.
- Claims underwriting exchange report.
- Discount eligibility.
- Mileage of the vehicle.
It’s important to renew your policy before your current plan expires. If you let your term expire before purchasing a new policy, you will be driving without coverage for a period of time, leaving you at risk of financial responsibility for other’s property damage and injuries.
What If I Don’t Renew?
In many cases, your insurance premiums will go up when renewing a policy. If you decide the change is unwarranted or unacceptable, you will want to consider a new policy under a different insurance company. If you can find the same coverage for a lower price, it’s time to change providers. In this case, you won’t renew your current plan.
According to Esurance, if you decide to move on from your current policy, you’ll have to do two things:
- Contact your insurance provider and let them know you won’t be renewing your policy.
- Purchase a new policy before your current plan expires.
Deciding to let your car insurance expire is the same as canceling your policy. Each insurance provider differs in this situation. Some providers allow you to cancel over the phone or online, and others will need a letter of intent to cancel.
Whichever route you take to cancel, mark your policy’s end date on your calendar. If your insurance provider declines to renew your current policy or you decide to change companies, you’ll have to purchase a new plan before your current policy expires.
The cancellation date of your current plan and the start date of your new policy should occur on the same day. Auto insurance policies start and end at midnight on the date listed. You want to be sure you don’t end up with a gap in coverage.
How Do I Get New Car Insurance
If you have canceled your insurance policy, it’s time to get a new one. Follow these steps when looking for a new insurance company per PolicyGenius:
- Do it yourself or hire an expert: Although it’s easy and quick to get quotes online, working with an independent broker or insurance agent might be the easier choice. With an agent, you only need to submit information once, and the expert will guide your decision on the best insurance for you.
- Determine what coverage you’ll need: Sometimes, keeping the same coverage is perfect, or you may want to change your coverage limits and purchase add-on coverage. Look through your options and find the coverages you want.
- Fill out your application: You’ll have to submit an information document with your name, address, SSN, birth date, the vehicle’s VIN, and a declarations page from your old auto insurance plan.
- Get quotes: When comparing rates, make sure all the policies have similar coverage amounts and term limits. This way, you aren’t comparing minimum coverage to full coverage policies.
- Choose your carrier: To help make your decision, look at third-party ratings and reviews. After you choose your next provider, you can now cancel your current auto insurance plan.
Why Did My Rates Change?
According to Motor1, your rates may increase when renewing your insurance policy; some of the most common reasons for this are:
- You had claims against your insurance.
- Your deductible changed.
- Market changes, such as accident rates increased or the insurance industry lost money overall.
- You moved to another ZIP code.
- You committed a traffic violation.
- You were at fault for an accident.
- You changed your level of coverage.
- You removed or added a driver.
- You removed or added a vehicle.
- The annual mileage of your vehicle increased.
- Your motor vehicle report has new convictions.
- You filed a chargeable loss claim.
- You failed to respond to a request for your odometer reading.
- You failed to provide proof for discounts.
Renewing your insurance policy is often as easy as letting it renew automatically. Your rates may increase, so you should pay attention to the details of your new policy. If you decide on switching insurance companies, getting quotes online is free and instant. Head to your insurance provider’s website today to get a new auto insurance policy quote!
Check this out if you need additional information, resources, or guidance on car insurance.
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