It is that time of year again and you need to renew your car insurance policy. There are lots of things that you need to remember. Luckily, the way insurance is set up in Canada, it is relatively easy to remember to renew your insurance policy. Your insurance company will send you a renewal notice before your policy expires. A great way of reminding you about your policy expiry date. Unfortunately, many people do not pay attention to this and wait till the last minute to get insurance. However, this is a great time to go over your insurance policy. Make sure that you are covered for everything that you want to be covered for and remove things that you don’t.

How Do You Renew Your Car Insurance Policy?

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Depending on the insurance provider, you may not even have to renew your insurance at all. Some insurance providers automatically renew your insurance coverage unless you cancel your insurance policy. This is extremely handy, but you need to know if your insurance company does this or not. Never assume that your insurance company is automatically renewing your insurance policy. If you have any doubts, make sure that you contact your insurance provider. They will be able to tell you immediately if you still have coverage on your vehicle. You do not want to be caught driving without insurance.

When Is The Best Time To Renew Car Insurance?

The best time to renew your car insurance policy is well before the expiry date. As soon as you receive a renewal notice in the mail, you should get in touch with your insurance company. If you do not want to stay with your current insurance provider, you may also want to call other insurers for quotes. The best thing about auto insurance renewal is that car insurance companies are legally required to send you a notice before your insurance policy expires. This helps to prevent Canadians accidentally driving on the road without having insurance coverage.

What Happens If I Let My Car Insurance Expires?

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Nothing technically happens if you let your car insurance expire. However, you will not legally be allowed to drive if your car insurance expires. Once your car insurance expires, you can shop around wherever you like for your insurance coverage. Just as long as you know that you will be unable to register a vehicle and drive on the road.

What is a notice of nonrenewal?

If you receive a notice of nonrenewal from your insurance company, this means that your insurance company no longer wants to have you as a client. After a period of 60 days from the start of your insurance policy, your insurance provider cannot cancel your policy unless certain lines are crossed. As long as you pay your bills, don’t make fraudulent claims and your driver’s license is valid, your insurance provider cannot leave you until your insurance policy is up. When you are nearing the end of your insurance policy, if you have committed several driving offenses or submitted claims, you might receive a notice of nonrenewal from your insurance provider. If you receive one of these, make sure that you get a new insurance provider. Your other insurance policy will expire soon and you don’t want to be driving without insurance coverage.

Are There Any Cons to an Automatic Insurance Renewal?

The main con to an automatic insurance renewal is that you will not be able to negotiate a new insurance policy unless you do it before your renewal kicks in. As soon as your renewal kicks in, you would have to pay a cancellation fee to change your policy. Auto insurance premium prices change across the industry on a regular basis. You could potentially lose out on some major savings offered by a different insurance company. Your insurance policy might be the best deal on the market, but unless you do research beforehand, you won’t know for certain.

Can You Get Cheaper Car Insurance By Renewing Early?

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Generally, you should be able to get cheaper coverage the earlier that you renew your auto insurance. Your auto insurance provider wants to know that you are a lasting client. If you get in touch with them early so that they know you are going to be a repeat customer, they are more than likely going to give you a cheaper insurance rate. Leaving your car insurance to the last possible minute is never a good idea. Doing this is likely going to cause you to jump on the first possible deal that is in front of you. You will more than likely get a much better deal shopping around for a good insurance quote.

How Long Should I Renew My Car Insurance Policy For?

The length that you should renew your current car insurance policy for really depends on your situation. If you have money saved up, you might want to go for a long-term car insurance policy. Doing so and paying for your insurance premium upfront should land you a good discount. The best part is, you will have that low rate over the entire term of the policy without paying monthly insurance. However, not everyone has a whole lot of money saved up. You might want to go for a monthly insurance premium instead. If you don’t have a perfect driving record, you might also want to attempt to get a car insurance policy for a shorter period of time. Doing so will allow your driving record to clear, which will result in lower insurance quotes.

To Conclude

Renewing your insurance policy early is the best way to get a cheaper auto insurance premium. Insurance companies love loyalty. The sooner you contact them in regards to renewing your policy, as long as you have a good driving record, they will likely offer you a larger insurance discount. The sooner you start looking at renewing your auto insurance policy, the more companies you can contact with regards to a quote as well. Then, you can be sure you’re getting a good market price for your auto insurance. Generally, the more work you do when it comes to renewing your insurance policy, the better the price you’re going to get. Auto insurance is a very competitive market and you might be surprised how tense the competition is to get your business.

Resources:

https://www.iii.org/article/is-there-a-difference-between-cancellation-and-nonrenewal
https://www.thinkmoney.co.uk/news-advice/get-cheaper-car-insurance-by-renewing-early-0-5814-0.htm