When your car insurance is up for renewal, review your current policy, compare quotes, look for discounts, and finalize your renewal or lock in new coverage.
3+ years experience in insurance and personal finance editing
NPN: 20564519
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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Every state except New Hampshire requires car insurance, so it’s likely you have an existing auto insurance policy. Depending on your insurer, your insurance policy could renew automatically, or you might receive a notice from your insurance company shortly before it expires.
How frequently you renew your car insurance depends on the length of your policy’s term, though common terms are six and 12 months. Here’s what you should know about car insurance renewal.
Quick Facts
The renewal period typically occurs 45 to 60 days before your auto policy expires.
If your car insurance is up for renewal, shop around and compare quotes to decide whether to renew it or secure coverage elsewhere.
Severe driving infractions, like driving while intoxicated or numerous speeding violations, could prompt your insurer to decide not to renew your policy.
How to renew your car insurance
It’s fairly simple and straightforward to renew your auto policy. Here’s what the process entails:
1. Understand your current policy
First, familiarize yourself with your existing car insurance coverage. Review your contract and coverage limits, deductibles, and policy exclusions to confirm they still meet your needs.
Don’t forget to check for any changes to your premiums or policy terms. You should also determine whether you want to modify your coverage to accommodate new circumstances. Depending on your situation, you may want to add a driver or adjust your limits.[1]
2. Compare car insurance quotes
Next, get auto insurance quotes from at least three different car insurance companies. As you compare them, focus on coverage options in addition to premiums. Remember that a cheaper insurance policy may offer less protection, so it’s not always the best option.
To save time and zero in on the ideal policy more quickly, take advantage of online comparison tools or a car insurance agent. Ideally, you should compare car insurance quotes every six months to make sure you have a competitive rate.
3. Look for discounts
Most car insurers offer discounts to help policyholders save money. When you do your research and compare quotes, educate yourself on any discounts that may apply to you. Some of the most common discounts you may find include anti-theft device discounts, loyalty discounts, military discounts, and good student discounts.
You might also earn a discount if you enroll in paperless billing, pay for your policy in full, or bundle your auto insurance coverage with another insurance product, such as homeowners insurance or renters insurance. In addition, you may qualify for a discount if you’re an occasional driver or complete an approved defensive driving course.
4. Finalize your renewal or take out a new policy
If you decide to renew your car insurance policy with your current insurer, confirm any changes and update payment details, if necessary. You may also need to sign a renewal document to keep your coverage. Note that most car insurance companies offer auto-renewal and will renew your plan automatically as long as you continue to pay your premiums.
To cancel your policy and secure coverage from another car insurance company, call your insurer directly or log into your online portal to determine whether you can go through the process there. If you’re unsure of your insurer’s specific cancellation process, reach out to them to clarify. Once you cancel, be sure to lock in your new policy as soon as possible to avoid a lapse in coverage and potentially higher insurance premiums.
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When to renew your car insurance
Every car insurance company has its own renewal terms. But in most cases, auto policies last six or 12 months. The car insurance renewal period typically begins 45 to 60 days before your coverage expires. Keep in mind that auto insurance companies must notify policyholders that their policy is due for renewal in most states.[2]
A cancellation is when a car insurance company terminates your coverage before it expires. Your insurance company may do so if you don’t pay your premiums, commit fraud, or get a traffic violation that leads to a revoked driver’s license. If your policy begins on Jan. 5 and expires on June 30, any termination that falls between these two dates is a cancellation.
A policy non-renewal, on the other hand, occurs when you keep your current car insurance coverage until it expires. Once the expiration date hits, you may choose not to renew it. You’ll need to find another policy from a different insurance company to remain insured.[3] It’s also possible for a company to non-renew your coverage. This can occur if it no longer offers coverage in your area.
What happens if you don’t renew your policy and your coverage lapses?
If your car insurance policy expires and you don’t renew it, your coverage will likely lapse. Unfortunately, a coverage lapse can result in serious consequences, such as high out-of-pocket costs after a car accident, higher insurance premiums, license suspension, and (in the most severe cases) vehicle repossession.
Car insurance renewal FAQs
The following information can help answer your remaining questions about auto insurance renewals.
Do you need to formally cancel your policy if you’re just not renewing?
Yes. You’ll need to cancel your car insurance coverage if you don’t want to renew it. Many car insurance companies will let you do this over the phone or online.
Will my car insurance renew automatically?
Some car insurers have an auto-renewal process. This means the insurer will renew your policy automatically before its term expires. After an auto-renewal, you’ll likely receive a copy of your new policy in the mail and have to continue to make your premium payments.
Why did my car insurance rates increase?
Your auto insurance premiums may increase upon renewal, even if you haven’t filed a claim, received a traffic violation, or caused an accident. Higher car insurance rates usually occur due to industry trends, but you can always shop around to try to find a better deal on your coverage.
Why is car insurance cheaper at the same company if you buy a new policy instead of renewal?
Car insurance companies may consider you a riskier driver after you’ve already been a policyholder for some time than when you originally enrolled in coverage. As a result, they might charge higher premiums than a new insurer.
Can you renew car insurance after it’s expired?
Maybe. Some insurance companies may have a grace period if you accidentally let your coverage lapse without renewing. Most auto insurers have an auto-renewal process, meaning your policy will automatically renew as long as you continue to pay your premiums. Using auto-renewal can help you avoid a coverage lapse.
Methodology
Insurify data scientists analyzed more than 90 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 50+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
Property damage limits between $10,000 and $50,000
No additional coverage
Full-coverage premium averages correspond to the same bodily injury and property damage limits in addition to:
Comprehensive coverage with a $1,000 deductible
Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
Anna Baluch is a Cleveland-based personal finance and insurance expert. With an MBA from Roosevelt University, she enjoys writing educational content that helps people make smart financial decisions. Her work can be seen across the internet on many publications, including Freedom Debt Relief, Credit Karma, RateGenius, and the Balance. Connect with Anna on LinkedIn.
Anna has been a contributor at Insurify since December 2022.
3+ years experience in insurance and personal finance editing
NPN: 20564519
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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