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Jan 11, 2021
3 min
Guide to Car Insurance Renewal

Insurance Basics

Car insurance offers valuable financial protection in the event of an accident. You pay your premiums every month, and in return, your insurer will pay out to you in case something happens to you or your vehicle while you’re behind the wheel. 

One aspect of automotive insurance that we know is not particularly understood is the car insurance renewal period. We’re going to walk you through some of the specifics of insurance renewal for a car. 

We’ll explain what insurance renewal is, what you should be looking for, some special opportunities afforded to you by your insurance renewal period, and how to move forward. By the end, you should understand how insurance renewal works, and you should understand how best to facilitate the insurance renewal period. 

What is Insurance Renewal?

Most automotive insurance terms in Canada are annual. At the end of that one year, your renewal period occurs. You’ll likely be mailed or e-mailed a contract that will update you on your new policy, and any changes to the specifics of your policy. 

As most insurance companies have happily entered the digital age, many customers can expect car insurance online renewal as a feature of their insurance policy. This simplifies an already fairly painless process. Make sure you talk to your insurance provider to see if your car insurance features online renewal. Read also this article to learn about how long it takes to get a car insured in Ontario.

How Does it Work?

Since driving without insurance is a crime in Ontario, insurance companies will automatically renew your policy at the end of your current contract length. This is to prevent your coverage from lapsing and you committing a crime by driving without coverage. 

In many cases, you won’t even have to take any action. You should receive the renewal paperwork before your policy is expired. You may receive a courtesy phone call letting you know it’s time for your annual automotive insurance renewal. When this happens, don’t ignore it. Keep in mind most policies (with the exception of incredibly rare temporary insurance) renew annually.

Rate Changes

When your policy ends, and a new one begins, there could be a change in your rates. Often, if you haven’t had any accidents or traffic violations (including tickets, which can have a negative impact on your insurance), your rate will go down. This is to compensate for the fact that you’re statistically less likely to require a payout from your insurance and represent less risk to your insurer. 

This will also depend on whether you’ve been making your insurance payments on time. If you’re delinquent in your financial obligations to your insurance company, they may choose not to renew automatically. 

Your rate could also increase. This could be as a result of any number of factors, including but not limited to: a traffic ticket, an accident, or adding a new driver to your coverage. If this happens, you should be considering whether this rate accurately reflects your driving history and liability. If your insurance company offers telematics and you believe your driving habits (including speed and acceleration) would indicate responsibility, consider taking them up on it.

Other Considerations During Renewal

Renewal also offers you a unique opportunity. Since your policy is ending, you could change policies without penalty. If your rate isn’t what you want it to be, you could look at other insurance companies and see what rates they’re offering. It’s the perfect time to shop around. Surex can help you with this. They’re an insurance aggregator that compares prices from multiple companies, making it easier for people to save. 

There’s certainly no harm in reaching out to other insurance companies and seeing what types of rates they can offer you. If you’re a driver in good standing, with a clean driving record, your insurance renewal could be an opportunity to entertain more than one rate from more than one insurance company. After all, insurance companies want low-risk drivers as customers.  You may also want to check this article about car insurance for ladies.

If however, you’re happy with your current rate, it’s likely that very little will change for you. 

Bear in mind that if you do choose to continue your current coverage, but find a better rate later in the year, you might have to pay a penalty to end your policy early. That’s the main reason your car insurance renewal period offers you a unique opportunity to make sure you’re getting the best rate possible. 

How to Renew your Car Insurance

In most cases, a driver in good standing won’t have to do much. Since your policy will likely auto-renew, you should simply be aware of any rate changes, and continue driving much as before. This process is especially simplified if you’re happy with your current policy and coverage. 

If you’re asking yourself ‘when do you get your car insurance renewal’, you can expect to receive the renewal paperwork 30-60 days before the end of your policy. Keep your email and regular mail in mind during this period. 

You should examine the documents relating to your car insurance renewal closely. You want to make sure that your car insurance renewal information is accurate. Take a little extra time to make sure your personal and driving records are consistent with your current situation. The last thing you want is to run into problems down the road due to inaccurate information in your car insurance renewal documentation. 

When in doubt, you can generally contact whomever your insurance broker or agent is. Since they’re there to help you, you can expect them to assist you in understanding the car insurance renewal process. Most insurance companies are very used to getting calls or emails during a client’s renewal period and can help you to understand your policy and coverage. Check also who can drive under your insurance in Ontario in this article.

Frequently Asked Questions

Does my car insurance renew automatically?

In most cases, yes. If there is some outstanding issue with your insurance, it might not renew. You should be in contact with your insurer around the end of your current insurance period if you’re concerned that it might not be renewing automatically. 

How do I stop my car insurance renewal?

If you’re wanting to cancel or change plans, contact your insurance company before the renewal period to opt-out of renewal. If you don’t and later cancel during your annual term, you may pay a penalty. 

Conclusion

In conclusion, we hope you now have a better understanding of the car insurance renewal process. We know that having to renew your car insurance sounds like a daunting task, but we hope that yours goes well now that you understand the specifics of insurance renewal for a car. 

Keep in mind that the car insurance renewal period comes every year, and passes without incident for most. If you understand what we’ve presented for you here, your insurance renewal period will go by smoothly as well.

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