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Do you let your car insurance auto-renew, or do you compare other options before signing the dotted line?
Car insurance renewal is an opportunity for drivers to save money and reassess their needs. However, the majority of drivers simply allow it to auto-renew. According to Insurance Business Magazine, 64% (almost two-thirds) of Canadians let this happen.
Failing to take action and compare options when it is time to renew could be costing you hundreds of dollars per year. Ready to take action? Not sure where to start? We’ve got you covered.
The following will provide you with information about how to renew your insurance, things to consider, tips to save, and answers to common questions about the process.
When your policy is up for renewal, you will receive notice in the mail 45-60 days before the closing date. Standard renewals will be one year from the date it became effective. At the end of the term or the expiry date, it will be up for renewal. You will receive your new policy information for the upcoming term with information about your premium.
A few things can happen when you get your notice in the mail :
You also have the option to switch to another Ontario car insurance provider.
Most policies renew automatically if you continue to have a good driving record and you make your payments. While there certainly can be instances where no action is required, too many drivers fail to review the information.
Automatic renewals are easy, but they could also be costing you money. Never assume your new plan has the best price or that the coverage meets your needs. When it is time to renew your plan, it is an opportunity to see what other insurers have to offer. A lot can change in a year – you may qualify for new discounts, and you may pay less with another company.
Even if you intend to stay with your current provider, still take the time to check prices. Comparing is the single best way to see what the market has to offer. You may be surprised about how much money you can save.
Depending on who provides your policy, you might be able to renew it online. Some companies have implemented digital forms and apps that support auto-renewal. Contact your provider to confirm if these services are available to you.
It’s not uncommon for drivers to see their rates increase, even with a clean record. Here are some reasons why you could see an increase when it is time to renew :
Even if you are claims-free and don’t have any tickets, your premiums could still increase. They can happen due to increased regional claim activities, insurance fraud, and changes in the market. Checking with an advisor before renewing will help you save every time.
Here are some questions to consider that could impact your car insurance rates for the year :
Compare multiple auto insurance quotes and save more with ThinkInsure. Our advisors will find you the best coverage at a competitive rate.
Renewal time is also an opportunity to update your information with your insurer, such as :
While a renewal after the expiry date is possible, it can be difficult. You may be forced to pay a late fee or face higher costs because of an insurance gap.
When it is time to renew, it’s important to make your payment on time. If you fail to pay by the expiry date, your insurance could be temporarily suspended or cancelled. You’ll also be driving without insurance
Many drivers incorrectly assume they cannot switch before it is time to renew. This is not true - you can switch at any time. However, it may or may not be a good idea depending on your situation, how long you have left on your contract and other factors.
Changing early could result in a penalty or administrative fees. You will also be required to follow the cancellation procedures as outlined in your agreement. Depending on the savings from your new plan, it may or may not make more sense to wait. Switching insurers during the renewal process is simpler, you won’t face penalties, and it’s your best time to take advantage of cost savings.
A car insurance calculator can help you determine if renewing with your current provider is the best decision. It can also help you determine if switching mid-term is the right move to save money.
Whether you are getting it through a company or a broker, the car insurance renewal process goes like this :
Renewing your policy doesn't take as long as you think. It can be as quick as 5-10 minutes and save you money. Depending on any changes or questions you have, it may be longer. Once you confirm any changes, you’ll receive new documents in 14-30 days.
Insurers will send you a notice in the mail or online when your insurance is nearing expiration. Generally, you will receive this notice 30 days or more before it expires. During this period, you will need to decide whether to renew or compare auto insurance quotes.
Your insurance renewal date will be listed on your policy and proof of insurance.
If you are satisfied with your current insurer, you can complete the renewal before the expiration date. Simply notify them once you receive your notice.
No. Once your insurance expires, you are no longer insured, and you are not legally allowed to drive the vehicle. Always take action, renew or cancel it and go with a different company when you receive your renewal notice.
How early you can renew your depends on your insurer. Most companies will allow you to renew 30 to 45 days before expiring. Check your documents to confirm.
Each year, you can renew and find more budget-friendly options. Rather than auto-renewing, browse car insurance with multiple providers to see if you can get a better price. It’s your chance to shop around, find a lower payment and ensure you are taking advantage of insurance discounts.
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Digital Content Writer
Kayla-Jane has been a content writer with ThinkInsure since 2020. She creates insurance content for auto, home, and commercial. Kayla-Jane has a diploma in Journalism.
| Categories | Auto |
|---|---|
| Tags | Auto Coverage |
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