Every coverage has a predetermined expiration date at the end of the term, which is either 6 or 12 months. Often, policyholders wait until they receive auto insurance renewal quotes to shop around or make changes to policies. The renewal notice usually arrives about 30 days before the expiration date by email or mail and includes new price, declaration page, and start date for the new term (or expiration date for the current). Motorists like to use these details as a benchmark, target to beat and deadline.
Often, carriers send the insurance card for the next term as well with the notice but this doesn’t mean your policy is already renewed. They do this in anticipation.
Insurers are required to inform the policyholders even if they are not going to offer renewal terms because of claims, payment irregularities, too many tickets or a business decision on their part and they have to do this at least 10 – 20 days before the policy term ends, depending on the state rules. Then, automobile owners need to arrange alternative coverage to avoid lapses and driving without insurance.
Most insurers offer and set up automatic renewal options these days and they usually clearly state this in their letter. In such cases, policies would renew at the end for another term automatically as long as the provided payment method is still valid and working. Motorists are advised to check this point since credit or debit cards provided for this purpose can expire beforehand.
Also, in some states policyholders may need to sign a form or take another action before the policy can be renewed. So, make sure everything is in place.
If there is no automatic payment arrangement in place for auto insurance renewal, they need to contact the company to pay the full premium or set up a payment plan in time. People may still be able to take the renewal quote even after the expiry date depending on how long passed and the company. So, they shouldn’t hesitate to contact the company in any case.
Motorists should remember that their vehicle insurance renewal quote is based on the information the company has in their files. In some cases, it may have been provided several years ago and hasn’t been updated since. That is why they should check their declaration page carefully as this page provides important details about the coverage, listed drivers, vehicles, address, rates and other key facts.
Coverage requirements, listed drivers and other details may have changed since. In that case, they can contact their providers and ask for an updated car insurance renewal quote. For example, their credit score may have improved or they are not driving as many miles anymore, even if they are still living at the same address and driving the same car.
Also, they should take this opportunity to shop around and see other quotes from various companies. Renewal periods are the best times to switch companies because policies come to the end of their terms. If they find a better price, coverage or company, they can have a clear break away.
All they need to do is to set the new policy to start when the old one ends and let their current providers know they will not be renewing. Auto insurance policies renew or expire at midnight on the day. Also, it is a good idea to cancel any automatic payments to avoid getting charged.
These days, most automobile insurers prefer to sell 6 monthly policies because they want to give themselves a chance to review their prices, underwriting practices and to get rid of bad risks. So, motorists should do the same and look at alternative coverage options, providers and quotes.
Most motorists shouldn’t see much price change if everything remains the same. If you looked everywhere 6 months ago and couldn’t find any better deal you may be comfortable with the current carrier. You would be comfortable to renew with them especially if the premium came down. However, this should not be a habit to carry on for years.