When does my auto insurance renew? (2024)
If you're wondering when your auto insurance renews, insurers generally have policy periods of 6 or 12 months. In addition, most states require providers to send a 30-day notice. We'll explain whether car insurance automatically renews and how to get cheap car insurance if rates go up after renewal.
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Ty Stewart
Licensed Insurance Agent
Ty Stewart is the founder and CEO of SimpleLifeInsure.com. He started researching and studying about insurance when he got his first policy for his own family. He has been featured as an insurance expert speaker at agent conventions and in top publications. As an independent licensed insurance agent, he has helped clients nationwide to secure affordable coverage while making the process simpl...
Licensed Insurance Agent
UPDATED: Nov 1, 2024
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Nov 1, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
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If you’re wondering when your auto insurance renews and how the auto insurance renewal process works, we’re here to help. Standard car insurance policies only last 6 months or 12 months at a time. During this time, premiums remain the same until the term passes unless you change drivers, vehicles, locations, or coverages.
It’s not until the policy is set for renewal that the premiums can change for the better or the worse. Before renewing car insurance with Progressive, Allstate, Geico, or any provider, compare car insurance quotes from the best auto insurance companies.
Read on to learn about car insurance renewals, when they get processed, and what happens as your renewal approaches.
- Car insurance renewals explain new rates that take effect at your term’s end
- Insurers must notify you before your new term begins
- Most states require insurers to send out renewal notices 30-45 days in advance
Find Out When Your Auto Insurance Policy Renews
Car insurance policies renew after every term. Once the 6-month or 12-month term you carry ends, the policy must actually renew for your coverage to remain in effect.
Does your car insurance renew automatically? Yes, in most cases, your auto insurance policy renews automatically. The larger auto insurers like Geico, Allstate, and Progressive all renew automatically.
Read More:
In most cases, your auto insurance policy renews automatically, and if you buy new coverage you will need to remember to cancel your old auto insurance policy before it renews and you end up paying for two auto insurance policies.
While your first term isn’t a renewal, every term that you stay with an insurer after the initial term will be considered a renewal because it’s when a policy is reassessed for risk. Typically, the state department of insurance has rules regarding how much advance notice you must be given before the rate changes.
If the company decides that the household is still an acceptable risk, new documents will be sent out and the policyholder will have the option to continue the coverage or to shop around for better rates elsewhere.
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Why Rates Change After an Auto Insurance Renewal
There are several different reasons why your rates can go up or down when the policy renews. When you buy coverage, your premiums must stay level for the entire term after the policy has been underwritten, but that doesn’t mean they’ll stay level for life.
At some point, the insurer is free to reassess the risk and adjust the premiums when necessary. This happens when the term ends and the policy renews.
It’s important to budget for your insurance costs every year so that you can maintain continuous coverage without any lapses or surprises when you receive your auto insurance renewal reminder letter.
Since there’s a possibility that your insurance expenses could involuntarily go up at your renewal, you might be interested in learning when you should expect to get a notice in the mail.
Most Common Reasons for Rates to Go Up at Renewal
Insurance rates will be different at renewal because the policy is underwritten to assess new risk ratings.
All too often, consumers receive their auto insurance bills to find that their rates have gone up even when there’s been no real change to the policy itself. For loyal consumers who’ve stayed with an insurer for years, a 25% increase can feel like a slap in the face.
Here are some reasons a company might increase your renewal rate:
- The company has filed a higher gross rate through the department and it has taken effect.
- Your motor vehicle report has new driving convictions reported.
- You’ve filed a claim that’s considered a chargeable loss.
- You haven’t responded to a request for your odometer reading and current annual mileage.
- The insurer has discovered a new household member and has rated them as a covered driver.
- You’ve lost a good driver discount because of chargeable loss or multiple violations.
- You’ve failed to provide proof to renew discounts for mature driver training or good student discounts.
- You haven’t signed a waiver for medical payments or uninsured motorist and it’s been added to the policy.
Many experts say that being a loyal customer in the insurance market can cost you.
Most Common Reasons for Rate Decreases at Renewal
While it’s not common, rate decreases at the time of renewal are possible. Here are some changes that can lead to rate decreases:
- You’re a young driver and your driving experience qualifies you for good driver discounts.
- You have a conviction on your record that’s fallen off after 36 months.
- You have an at-fault accident that’s fallen off of your insurance record.
- Your new clean record qualifies you for good driver discounts.
- You’re eligible for a new loyalty discount.
- Your child earns good grades and received the good student auto insurance discount.
- You provide an odometer reading and you’re in a low mileage class.
More often than not, the rate change is because of something that’s changed in your favor and not because the company has lowered its base rates.
When You’ll Receive Notice for Your Insurance Renewal
You want to be sure that you have enough time to review your renewal notice so that you can shop the market to look for lower rates. It’s also important that you review the details and rating factors for errors that could save you money.
In most cases, the states require that companies send out your renewal documents at least 30 to 45 days before your term expires. You'll need to be given at least 45 to 60 days' notice if the policy is set for non-renewal.Zach Fagiano Licensed Insurance Broker
Most states have an auto insurance renewal grace period which will allow you to renew expired auto insurance online in many cases. Some companies offer their customers the option to automatically renew if they’re set up for automatic payments.
Read More: What You Should Do If Your Auto Insurance Expired Yesterday
What Underwriters Look at When They Process Renewals
Processing a renewal is a lot like underwriting a new policy application. Since everything is reassessed, the professionals will run all of the same reports they run when they’re issuing a policy.
Here are some of the things they might do:
- Run drivers’ motor vehicle reports
- Run the claims underwriting exchange report
- Discount eligibility evaluated
- Usage, mileage, and vehicle ratings reassessed
If you’re about to receive your renewal, it’s important that you are prepared to shop the market. Taking the information on your renewal and getting multiple rate quotes is an efficient way to keep your auto insurance premiums low.
If you want to save time on your mission to find affordable coverage, use an online comparison shopping tool and you can see what each competitor in the market charges instantly.
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Automatic Renewals for Car Insurance Coverage
In the interest of eliminating as much uninsured driving as possible, an increasing number of insurance companies offer continuous coverage that renews automatically unless the policy is canceled.
Usually, insurance companies will automatically renew the policies of those customers who pay using debit accounts or certain credit cards.
However, unless the insurance company specifically states that the policy will be automatically renewed, customers shouldn’t assume that because they’ve received a renewal notice, their insurance coverage will continue.
They should contact the company not only to ensure they have continuing coverage but also to report all incorrect policy information and any necessary changes needed for adequate coverage.
Continuous Renewals Benefit the Companies
Customers should understand that accepting the automatic renewal process could result in numerous drivers having higher costs rather than the lowest cost auto insurance company. Be sure to shop around and compare rates from top providers if you get an auto insurance renewal increase.
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While automatic renewal offers convenience because it eliminates the possibility of lapsing policies and dealing with the hassle of reviewing and signing contracts, automatic renewals remove the customer’s incentive to shop around and possibly find a better deal somewhere else.
Automatic renewals are actually favorable for insurance companies as well because if the customer doesn’t shop around and the policy is simply renewed, the insurance companies retain their business, and all the profits from the rate increase too.
Learn More: How to Evaluate Auto Insurance Quotes
Therefore, it’s always to the customer’s advantage to thoroughly review their renewal policies because all insurance companies’ rates and coverage change.
How often does car insurance renew?
Car insurance policies generally renew every 6 or 12 months depending on the term length chosen by the policyholder. During renewal, the insurer reassesses the policy and updates the premium rates and terms based on any new risk factors or changes in the driver’s circumstances.
Can I change car insurance before the renewal date?
Yes, you can change your car insurance before the renewal date. If you find a better rate or are dissatisfied with your current insurer, you can cancel your existing policy and start a new one with another company at any time. It is advisable to align the new policy start date with the old policy’s end date to avoid any coverage gaps.
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When to renew car insurance?
The best time to review and renew car insurance is before the current policy expires. Ideally, start comparing quotes and reviewing your coverage needs a few weeks to a month before the renewal date. This approach provides ample time to decide whether to stay with your current insurer or switch to a new one based on coverage options and pricing.
Streamlining Auto Insurance Renewals for Informed Coverage Decisions
In actuality, it’s not important to renew an auto insurance policy prior to expiration. Most policies remain in effect for 6- or 12-month periods and customers often don’t have time to consider renewing before then.
So, it’s critical for auto insurance policyholders to be mindful of their policy’s expiration date to allow time for research. Insurance companies are always striving to attract new business, offering a multitude of auto insurance discounts and promotions to prospective customers.
Frequently Asked Questions
When do I get my auto insurance renewal?
The timing of auto insurance renewals can vary depending on your insurance provider and the specific policy terms. Typically, insurance companies send out renewal notices 30 to 60 days before the expiration of your current policy. It is essential to review the renewal notice carefully, assess any changes in coverage or premiums, and take necessary action before the renewal date.
What should I do when I receive my auto insurance renewal notice?
When you receive your auto insurance renewal notice, it is crucial to review it thoroughly. Check for any changes in coverage, policy terms, or premiums. Compare the new terms with your current policy to ensure they meet your needs. If you’re satisfied, you can choose to continue with the renewal by making the payment before the renewal date. If you have any concerns or wish to make changes, contact your insurance provider to discuss your options.
Can I switch auto insurance providers at the time of renewal?
Yes, you have the freedom to switch auto insurance providers at the time of renewal. It’s an opportune moment to review your current coverage and premiums and compare them with offerings from other insurance companies. If you find a better option that suits your needs, you can initiate the switch by contacting the new insurer and completing the necessary paperwork. Remember to cancel your existing policy once the new one is in effect.
Will my premiums change during the auto insurance renewal?
Auto insurance premiums can change during the renewal process. Insurance companies consider various factors when determining premiums, such as your driving history, claims history, vehicle type, location, and other personal details. Changes in any of these factors, as well as general market conditions and underwriting guidelines, can lead to premium adjustments. It’s essential to review the renewal notice carefully to understand any changes in your premiums.
What are the pros and cons of renewing auto insurance with the same provider?
Pros:
- Familiarity: Renewing with the same insurance provider allows you to continue with a company you’re familiar with, including their customer service and claims handling processes.
- Potential discounts: Insurance companies often offer loyalty discounts to customers who renew their policies, which can help reduce premiums.
- Bundling benefits: If you have multiple insurance policies with the same provider, such as auto and home insurance, renewing with them might provide bundling benefits and cost savings.
Cons:
- Limited options: Renewing with the same provider may restrict you from exploring potentially better coverage or pricing available from other insurers.
- Missed savings: Without comparing quotes from different providers, you may miss out on potential savings or better policy features that another insurer could offer.
- Changing needs: Over time, your insurance needs may change. Renewing without reassessing your coverage might leave you underinsured or paying for unnecessary coverage.
Does Geico automatically renew?
Yes, Geico will auto-renew if you have autopay. (Read More: Geico Auto Insurance Review)
Does car insurance automatically renew with Progressive?
Yes, policyholders who enroll in automatic payments enjoy automatic policy renewal with Progressive. (Read More: Progressive Auto Insurance Review)
When does Progressive send a renewal notice?
You’ll receive a Progressive insurance renewal notice 28 days before it renews if you have monthly automatic payments.
Can I renew my expired auto insurance?
Sometimes expired auto insurance can be renewed online during the grace period. If you’re unsure of your auto insurance expiration date, check for the expiration date on your insurance card or contact your insurer’s customer service department. If you use a mobile app supplied by your insurer, you can probably find the expiration date there.
What day is the best day to renew car insurance?
The best day to renew car insurance depends on your insurer and personal circumstances. However, renewing your policy a few weeks before its expiration gives policyholders time to explore options.
You should also begin researching other companies two months prior to expiration, giving you time to compare rates, coverage options, discounts, and customer reviews.
How do I know if my insurance automatically renews?
To determine if your insurance automatically renews, check your policy documents or contact your insurance provider directly. Most companies will state their renewal policies in the terms and conditions section of your agreement.
What is the renewal date of insurance?
The renewal date of insurance is the date when your current insurance policy term ends and the new term begins. This is the date by which you must decide to renew or change your policy.
What is the insurance policy renewal date?
The insurance policy renewal date is the scheduled date on which your existing insurance policy expires and a new period begins. This date is critical for reviewing and updating your policy or opting to switch providers.
Why didn’t my insurance automatically renew?
Your insurance might not automatically renew for several reasons, such as non-payment of premiums, changes in policy terms, or an insurer’s decision not to renew your policy based on risk assessment. Contact your insurer to determine the specific reason.
Does car insurance expire at midnight?
Yes, car insurance typically expires at midnight on the date listed in your policy documents. It is essential to know the exact time to ensure continuous coverage and avoid driving without insurance.
What is pre-renewal in insurance?
Pre-renewal in insurance refers to the process and period before the actual renewal date. During this time, insurers may review the policy, make adjustments, and provide the policyholder with new terms, rates, and conditions for the upcoming term.
Do I need to cancel car insurance when it expires?
No, you do not need to cancel your car insurance when it expires if you do not wish to continue with the same provider. However, ensure you have new insurance in place to avoid a lapse in coverage which can lead to legal and financial penalties.
What happens when your car insurance policy is up?
When your car insurance policy is up, you can either renew your policy with the same insurer, switch to a new insurer, or let the policy lapse, which is not recommended due to potential risks and penalties for uninsured driving.
How long is the grace period for Progressive auto insurance?
Progressive auto insurance typically offers a grace period of up to 10 to 20 days after the payment due date, depending on the state. During this time, your coverage remains active even if your payment is late.
Can you cancel insurance on the renewal date?
Yes, you can cancel your insurance on the renewal date. However, it is advisable to notify your insurer in advance to avoid automatic renewal of the policy if you do not intend to continue with them. Ensure you have alternate coverage arranged to avoid a lapse.
How to renew car insurance with Geico?
To renew your car insurance with Geico, you can either allow the policy to auto-renew according to your account settings or you can manually renew through the Geico website or by calling their customer service. If you have set up auto-payments, Geico will handle the renewal process automatically.
Does Progressive auto insurance automatically renew?
Yes, Progressive auto insurance policies do automatically renew for customers who have opted into their automatic payment program. This ensures continuous coverage without any action required from the policyholder. However, it’s important to review the renewal terms sent via email or mail prior to the renewal date.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Ty Stewart
Licensed Insurance Agent
Ty Stewart is the founder and CEO of SimpleLifeInsure.com. He started researching and studying about insurance when he got his first policy for his own family. He has been featured as an insurance expert speaker at agent conventions and in top publications. As an independent licensed insurance agent, he has helped clients nationwide to secure affordable coverage while making the process simpl...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.