You can’t avoid having a car insurance policy if you plan to drive on Canadian roads. But, you may be able to use your car insurance renewal as a chance to save money and determine if your needs have changed since you first purchased your policy.
Unfortunately, many drivers miss this opportunity because they just allow their policies to auto-renew. While this might be a more convenient way to renew your insurance, it could cost you.
Should you let your policy auto-renew, or should you buy a new one?
Auto-Renewing Your Car Insurance
When you take out a car insurance policy, you have the option to have it renew automatically when your policy term ends, typically after one year. But is allowing your insurance policy to auto-renew the best option for you?
Convenience vs. Savings
While letting your auto insurance renew on its own might sound convenient, it could cost you. That’s because you’ll miss the chance to closely review your policy and identify any changes you may want to make that could better reflect your needs and even save you money. You might also want to shop around with other insurers that might be more affordable without compromising on coverage.
Shop Around For Better Rates
Sure, shopping around for an auto insurance policy might take a little time out of your day, but it might be worth it if you can get something for a better price.
The truth is, it only takes a few minutes to comparison shop thanks to online aggregators. All you need to do is conduct a quick internet search, and a slew of insurance providers and their associated policies will pop up in seconds after you input a few pieces of information related to what you’re looking for. And there’s no obligation to sign up with any particular insurer if you’re not ready to make the switch.
If you settle for auto-renewal, you could be missing out on savings, so it might be worth it to manually renew your policy so you can look around first before deciding whether to renew or change policies.
Does Your Car Policy Change When It Auto Renews?
Your car insurance policy will auto-renew (if you’ve chosen this option) once your current policy’s term expires. You’ll receive information about your upcoming renewed policy before it formally renews, giving you a chance to look things over beforehand. If you wish to make some changes, you’ll need to get in touch with your insurance provider in advance of your policy renewal.
The question is, will anything change automatically when your policy auto-renews?
It’s possible. More specifically, your rates could change when your policy renews. This could make your policy more expensive. That said, changes are not necessarily inevitable. It’s possible for your rates to remain the same with your renewed policy.
There’s also a chance that your insurance provider will not renew your policy. For example, if you’ve missed payments or filed a fraudulent claim in the past, your insurer may want to cancel your policy.
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READ ARTICLEHow Early Can You Renew Your Car Insurance?
As mentioned, your insurance provider will notify you well in advance of your policy’s expiration date. Generally speaking, you can renew your auto insurance policy around 30 to 45 days before it expires.
Can You Renew Your Car Insurance If You Have Any Traffic Tickets?
Traffic tickets should not get in the way of our ability to renew your car insurance policy. While your rates could increase if you frequently receive traffic tickets or are involved in serious driving offences, your insurer doesn’t have any grounds to cancel your policy based on your traffic tickets.
That said, you’ll need to pay for any outstanding tickets before you renew your policy.
Should You Auto-Renew Or Buy New Car Insurance?
Allowing your insurance policy to auto-renew takes all the work off your hands to manually renew, and saves you the time required to review your policy, make changes, or shop for a new policy. But you could be missing out on savings from your auto-renewal.
If you’re happy with your current policy and have taken a few minutes to look around to see what else is out there, then auto-renewing might make sense for you. But if you think you can snag a better deal on a policy with another insurer, then it might be a good idea to shop around and buy a new car insurance policy with another provider.
Use a comparison website to compare rates and companies and weigh all your options to see where there are potential savings to be had.
Find out if you should raise your auto insurance deductible.
How To Renew Car Insurance
Renewing your car insurance policy is simple. Just follow these steps:
Wait For A Renewal Notice To Be Mailed To You
Insurance companies typically send out renewal notices in the mail within 30 to 60 before the renewal date. Keep an eye out for this notice. If you don’t receive one within this time frame, contact your insurance provider.
Go Over Your New Policy’s Rates And Terms
If there are any changes being made to your new policy, now’s the chance to review them.
Allow Your Policy To Auto-Renew
If you’re satisfied, you can allow your policy to auto-renew, or you can manually renew on your own. Otherwise, you’ll have a few weeks to shop around for a new policy and company to see if there’s anything better out there.
Pay Your Premium
Allow your automatic payments to continue to pay the full amount upfront if that’s an option that you prefer.
Information Required to Renew Your Car Insurance Policy
To renew your auto insurance policy, you’ll need to provide the following information to your insurance company:
- Mailing address / postal code
- Telephone number
- Email address
- Purpose of vehicle usage
- Modifications made to your vehicle
- New drivers who will be using the vehicle
- Traffic tickets, license suspensions, or accidents
Tips For Renewing Your Car Insurance
Whether you auto-renew or manually renew your car insurance policy, there are certain steps you can take to make sure you’re getting the best deal.
Consider Whether Your Situation Has Changed
There are certain factors that impact your car insurance rates, and while you may not be able to do anything about certain things, there are other factors that are within your control. For example, your driving record, postal code, yearly mileage, car model, and credit score can all impact your rates. If things have changed on your end that could help lower your rate, be sure to communicate these with your insurer.
Review Car Insurance Renewal Options
Rather than just blindly go into your new policy via auto-renewal, consider taking some time to review your options with your provider. For instance, find out which policy is best for you based on your needs and budget or whether you need more coverage.
Find Out If You’re Eligible For Any Discounts
There are many discounts that insurers offer their clients that can help bring down the cost of a policy. For example, students and seniors may be offered special rates, and bundled policies can help reduce the overall cost of coverage. Inquire with your insurer about the types of discounts offered.
Car Insurance Renewal FAQs
What if my car insurance renewal is declined?
When is the best time to renew car insurance?
Can you switch your car insurance before the renewal date?
What happens with an insurance renewal after the expiry date?
Final Thoughts
Car insurance is a must to drive legally in Canada, but that doesn’t mean you don’t have any control over your rates. And perhaps the best time to look around for a better rate is just before your policy renews. Just make sure you give yourself enough time to shop around before your policy is up for renewal.
