Most drivers are aware in Canada that they must have the basic vehicle insurance. To be able to drive their vehicle. There are those that only purchase the basic required coverage. Then many others will buy extra coverage.
There are a lot of different insurance companies that serve Canada. It means that there are some great options to choose from. Every insurance company has rules and regulations that they must follow. Over and above this they then can vary in the way that they do business. When it comes to vehicle insurance and payments, the insurance companies may differ. They offer different payment plans. In most cases, the vehicle insurance coverage runs on a yearly basis. Although some companies may do it on a two year basis. In any event, the policy will come up for renewal.
Can an Insurance Company Do Automatic Renewals?
It is possible for an insurance company to do an automatic renewal. For the vehicle insurance policy. What they will do is draft up the new policy-making any changes that they feel are necessary. Then they will mail out the new policy with the new insurance sticker.
Many people will accept this form of renewing their insurance. They simply look at the amount due and the payment terms and then follow through with this. Buying any type of insurance including vehicle insurance can be a hassle. Most individuals are quite happy with the renewal process. It means that they don’t have to go through the steps again. That they did when buying this insurance.
Is There Anything Wrong with Automatic Vehicle Insurance Renewal?
There is nothing wrong with insurance renewal. It is something that the insurance companies are allowed to do. For the insured, it is a convenience. However, there could be changes to the auto insurance that demands attention. Most often with auto-renewals, the insured does not check their policy. To see if there are any differences.
Quite often there can be reforms in insurance that are important for the insured driver to be aware of. They may only become aware of this when they get their renewal policy. For example, there was an auto insurance reform on June 1, 2016. This included new lower standard benefits. Many insured individuals are not even aware of this. As they didn’t check their policy for changes or keep up with the insurance news.
When Do You Have to Renew Your Car Insurance?
Your car insurance renewal will depend on the date of your policy. Quite often it is required to get renewed every year from the date that the policy started. The insurance company that a person is dealing with should send out a renewal notice. Even if they are not going to renew the policy. They usually mail this out in plenty of time so that the insured can get prepared for it.
Every insured driver should be aware of the date that their insurance needs to be renewed. When there is a renewal, a new pink slip is issued that identifies the driver has insurance. If this becomes outdated and an individual gets stopped by the police, it could be an issue.
Not only that it gives one time to know if they need to update their insurance in any way. Some individuals decide that they would like to have additional insurance. Others decide that they want to reduce their costs and maybe reduce some of the coverage. These are all things that can be put in place before the renewal so the company can do an updated policy.
Also being aware gives one the expectation of receiving a renewal notice. Or automatic renewal from their insurance company. If by chance they don’t get this than the responsibility is on the insured. To contact their insurance company. To see what has happened.
Do I Need To Do Anything Before My Renewal?
If an individual wants to get the best from what they are paying for then it is worth reviewing their situation. There may be changes that are now going to affect the insurance. They also want to look to see if there are any new discounts. That their insurance company is offering. Ones that they may want to take advantage of. They should not assume that the insurance company is going to automatically give these discounts. It could be that they had an additional driver on their policy that is no longer there. This could have an effect on their premiums that will affect renewal. These are things that the insured wants to bring to the attention of their insurance company. Before they draft the new policy.
Can You Cancel Your Insurance Policy at Any Time?
You do have the opportunity to cancel your insurance at any time. There may be a lot of reasons for wanting to do this. Most often if an individual is going to cancel their insurance, they may wait until it’s renewal time. More people are becoming proactive in learning more about their insurance. This is because the cost of insurance for vehicles can be quite high. If there are ways that they can get savings, then they want to take advantage of this.
Should You Renew With the Same Company?
The insurance business is a very competitive business. Especially when it comes to vehicle insurance. Every insurance company wants to build their client database. They do this by being able to offer as many incentives as possible. It might be well worth looking around. To see what is currently being offered before one renews their insurance. Some individuals have had their insurance in place for many years. It may be that they are losing out on a lot of opportunities that insurance companies are now offering. It does take a little bit of work to review the policy and then do some comparisons. However, there’s not much work involved to get some quotes which are quick and easy. Then compare these against the current insurance. When the individual goes to renew their insurance they’re going to feel confident. That they are taking advantage of what is best for them.