How to Renew Your Car Insurance

Car insurance renewal is a routine but important part of maintaining your coverage. When your policy is nearing its expiration date, your insurer will likely send you a renewal notice detailing any changes in your premium and coverage.

The process is usually simple and straightforward, especially if your policy is set up to automatically renew once you pay your premium. However, this renewal period is a good time to review your policy to ensure that your current coverage meets your needs at the best price.

Let’s look at how to renew your car insurance and what to do if you want to change insurers.

Key takeaways

• Car insurance policies renew either every six months or annually.
• Many policies automatically renew once you make your premium payment.
• Insurers send renewal notices about a month before a policy’s expiration date.
• The renewal period is a good time to make coverage changes or shop for new coverage.

How to renew car insurance

Renewing your car insurance is essential to ensuring you remain legally covered and protected while you’re behind the wheel. Most states require that you have at least some level of car insurance, so it’s important that you don’t let your coverage lapse or get canceled altogether.

The car insurance renewal process is generally straightforward and sometimes happens automatically when you continue to make your premium payments. However, not every insurer will automatically renew your policy, so to avoid any lapses in coverage, consider taking the following steps to renew your car insurance.

Know your expiration date and keep an eye out for a renewal notice

Car insurance policies typically last for six months to a year, and you can pay your premiums annually, semi-annually, or monthly. Before your policy expires, your insurer will usually send you a renewal notice about 30 days in advance. This notice will outline your policy expiration date, the coverage date of your new policy (should you renew it), your new premium, and any changes to the policy terms.

If you autopay your car insurance premium, your insurer may notify you that it will deduct your premium on your renewal date, which automatically renews your policy. If you don’t plan to make any changes to the policy, then you can just let the policy renew. However, make sure the credit/debit card the insurer has on file hasn’t expired, or your policy could lapse if the payment doesn’t go through.

If your insurer doesn’t offer automatic renewal, you’ll need to ensure you renew your policy before the expiration date. Missing the deadline could result in more than just a lapse in coverage. You could also face penalties or higher future premiums.

Assess your rates and current coverage

It’s a good idea to review your car insurance policy at least once a year, and the perfect time to do that is when your policy is ready for renewal. Take a close look at your new premium and compare it to what you’ve paid in the past. It’s not uncommon for premiums to gradually increase at each renewal. Also, your driving habits, financial situation, or vehicle usage may have changed, which may require adjustments to your coverage. For example, if you purchase a new vehicle, you’ll want to make sure you have comprehensive and collision coverage for it.

If your rates have increased, you may want to consider changing your coverage to lower the cost of your premiums. You can also reach out to your insurer to see if there are any available discounts that you may qualify for.

Shop around

Even if you’re satisfied with your current car insurance company, it’s a good idea to get quotes from other insurers before you renew your policy to find the best cheap car insurance.

When you compare car insurance rates, you may find another insurance company that provides you with the same level of coverage at a more affordable price. Most insurance companies will provide you with a free quote on coverage. You may even be able to use quotes you get to negotiate for a lower premium cost from your current insurer.

Pay your renewal premium

If you decide to stick with your current insurer, you’ll just need to pay your premium before the expiration date to renew your policy. You can usually save money by paying your annual or semi-annual premium in full rather than opting for monthly payments.

However, you should have the money in the bank to make the full payment or pay it off quickly if you use a credit card. With most credit card interest rates at over 20%, unless you can pay the amount off right away, the savings you would get paying in full could be outweighed by the interest you accrue, ultimately making it a more expensive option.

Remember, you must pay your premium before the renewal deadline to avoid a lapse in coverage. Setting up automatic payments can help ensure that you don’t accidentally miss a payment.

Late renewal and expiration

Letting your car insurance expire can lead to a lot of headaches. Some insurers offer a short grace period for you to renew your coverage without penalties, but not all insurers provide this option. If you let your policy lapse, you run the risk of having your policy canceled or being charged higher premiums and possible penalties. A lapse in coverage signals to the insurance company that you are a higher risk customer, which may lead to increased premiums.

Most states require drivers to carry at least liability insurance coverage, so if cost is an issue, it may be better to reduce your coverage to the required minimum rather than let it expire altogether. In case you unintentionally miss the renewal date and your policy expires, contact your insurer immediately to see if you can get it reinstated, preferably without penalty.

What if I don’t want to renew my car insurance?

While you have to carry some level of car insurance if you want to stay on the road, you don’t have to renew your current policy. In that case, it’s important to know how to switch car insurance providers.

If you decide not to renew with your current insurer, you’ll need to make another plan for coverage. After you receive your renewal notice, start shopping around for alternative coverage because you’ll have about a month to do so.

If you decide to go with a different insurer, you should secure a new car insurance policy before canceling your existing policy so there isn’t any lapse in coverage. Also, make sure to notify your current insurance company about the change so you can avoid automatic renewal.

How to find new car insurance

Whether you are planning on renewing your car insurance or looking to switch providers, it is a good idea to shop around and get quotes from other insurance companies to ensure you are getting the best coverage for what you are paying. Fortunately, there are several websites that offer car insurance comparison information and tools to help you.

The Zebra

The Zebra is a website offering visitors everything insurance. It has a plethora of information on all types of insurance, including car insurance. The site also offers a free insurance aggregator that can help you find the most affordable car insurance in your area.

After you answer a few questions about your current coverage, type of car you drive, where you live, your driving history, and a few other things, The Zebra provides you with estimates of how much car insurance will cost you at various insurance companies. The site partners with over 100 insurers, including State Farm, Progressive, GEICO, and Liberty Mutual.

The prices The Zebra quotes are just estimates. To get a more accurate rate, you’ll need to visit the insurer’s website and answer many of the same questions. While this may seem twice the work, The Zebra is still a good place to start if you want to narrow the field on car insurance providers.

Read our review of The Zebra.

QuoteWizard

QuoteWizard also provides a tool for you to compare car insurance companies.

However, unlike The Zebra, QuoteWizard doesn’t actually quote any prices for coverage. It is more of a lead generator that suggests what it believes are the best insurers for you, given factors such as your age, location, coverage requirements, credit score, and more. You will still need to visit the insurance company’s website to get an exact quote.

While the information provided by QuoteWizard may be helpful in your search for affordable car insurance, it will also result in a bunch of calls and emails from insurers wanting your business.

Read our review of QuoteWizard.

Bottom line

Renewing your car insurance isn’t complicated. With some insurers, the process is often automatic as long as you continue to pay your premiums. You can make the renewal process work to your advantage by staying up-to-date on your policy’s expiration date, your coverage needs, and how much other insurance companies are charging for the same coverage.

Whether you choose to stick with your current car insurance company or switch providers, it’s important to ensure that you have continuous coverage so you can avoid financial and legal repercussions that result from a lapse in coverage.

Taking a proactive approach to your car insurance renewal can help you secure the best car insurance coverage at the most affordable rate.