Car insurance renewal guide: What you should know

How to renew your car insurance

Renewing car insurance is simple; most policies will auto-renew, but you still need to review the renewal notice. Check your premiumThe payment required for an insurance policy to remain in force. Auto insurance premiums are quoted for either 6-month or annual policy periods., coverage limits, deductibles, drivers, vehicles and discounts before the new term starts. If the price has changed, compare quotes before the renewal.

“Pretty much any policy that we write automatically renews. There’s really nothing that the client needs to do,” says Josiah Hatch, owner and CEO of Bender Hatch Insurance in Boston, Mass.

However, there are still a few steps you should take during the insurance policy renewal process, with the example of a driver we'll call Gabriel:

Review your renewal paperwork. Gabriel looks over his renewal documents for any changes in rates and goes over his coverage. His current full coverage policy is as follows:
- Liability: 50/100/50
- Comprehensive and collision deductibles: $500
- Other: Gabriel carries uninsured/underinsured motorist coverage with limits that match his liability, rental reimbursement, and roadside assistance
- Annual rate: $1,200
Reach out to your insurance agent or company representative if you have concerns about coverage or rates. Gabriel calls his insurance agent because his insurance rate has gone up by $200 a year. He's told it's a company rate increase that has nothing to do with him. After reviewing his needs, he decides to keep his current limits.
Request quotes from other auto insurance providers. Renewal is a good time to compare quotes and make sure you're getting the best deal. Gabriel requests quotes from three companies at the same coverage levels. The lowest quote he receives is $950 a year, $250 less than his current coverage. The quote is from a reputable company.
Finalize your renewal or buy new coverage and cancel. If everything looks good with your current policy, you generally don't have to do anything. However, Gabriel doesn't want to pay more than he has to, so he decides to switch. He signs up for the new policy as of his renewal date and notifies his current company that he does not plan to renew.

Does car insurance automatically renew?

Most car insurance policies renew automatically as long as you remain eligible and your payment method is active. Auto-renewal helps prevent a lapseWhen your auto insurance coverage ends because you missed a payment or did not renew it on time. A lapse in auto insurance coverage may result in paying higher premiums for a new policy., but it can also let rate increases pass unnoticed. Always read your renewal notice and confirm the new premium before the policy renews.

People ask

Can I renew my car insurance after expiry?

You may be able to renew an expired policy, depending on how long it has been expired. Most insurance companies will reinstate the policy if it's within a short period of time. You may have to sign a statement of no loss for the time that you were uninsured.

What if you don’t want to renew your auto insurance?

If you do not want to renew your auto insurance, buy a new policy first and set it to start when your current policy ends. Then notify your current insurer that you do not want to renew. Request written confirmation so you do not get billed or create a coverage gap.

You must have a new policy lined up to kick in the day your old policy ends. Remember that if you don’t notify your provider that you don’t plan to renew, you may wind up paying for two policies if they overlap. Or, if you simply don’t pay the bill, it could wind up on your credit history. Contact the company before the renewal date to ensure coverage and payments end.

In many cases, your new insurance company will notify the old one for you, but it’s best to confirm.

People ask

What happens if I don't renew my car insurance?

If your car insurance isn't renewed, you will be uninsured. It's illegal to drive without insurance in all states except New Hampshire.

Do you have to pay to renew your car insurance?

Yes. You must pay the premium for the next policy term to renew car insurance. If you pay monthly, your payments will continue under the new term and may change if your rate increases. If your payment method fails, your policy will lapse after the notice period.

If you were already paying monthly, those monthly payments will continue. However, if there has been a rate increase on renewal, your monthly payment will go up.

When to renew car insurance

Car insurance renews at the end of your policy term, which is every six or 12 months. Your renewal notice will arrive before the renewal date and show your new premium, coverage and policy term dates. Review it right away so you have time to compare quotes or make changes.

Although annual renewals were once common, these days, it’s more common to have a six-month term.

What does it mean to be non-renewed by the insurance company?

A nonrenewal means your insurer will not continue your policy after the current term ends. It is different from cancellation, which ends coverage during the policy term. Insurers must give written notice before nonrenewal, and state law controls how much notice you receive.

You can’t be non-renewed for just any reason. “There’s a very short list of levers [insurance companies] can pull to get off a policy midterm. As for a non-renewal, that could be any number of things. It could be due to points on your license, or if you haven’t gotten a…license [in your new home state],” says Hatch.

Getting car insurance after a non-renewal can be difficult, depending on why the insurance company dropped you. If you have racked up tickets and accidents, the odds are good that other insurance companies will also see you as high-risk. However, not all insurance companies look at your record the same way, so your best bet is to request quotes from as many insurers as possible.

How to get car insurance after non-renewal

If your car insurance is nonrenewed, start shopping as soon as you receive the notice. Ask your insurer why it is ending the policy, then compare quotes from standard and nonstandard insurers. If you cannot find coverage, contact your state’s assigned risk plan as a last resort.

To find new coverage:

Contact a local insurance agent. A local agent will be able to advise you as to which car insurance companies are willing to take on higher-risk drivers.
Request quotes from multiple companies. Rates are likely to be higher for high-risk drivers who have been non-renewed. It's important to compare rates from as many companies as possible to find the most affordable coverage.
Consider your state's assigned risk pool. If you have been turned down or can't find affordable insurance, reach out to your state's automobile insurance plan. These plans spread the risk by assigning high-risk drivers to insurance companies and are a last-resort option.

What to do if your car insurance rates increase on renewal

If your renewal rate increases, ask your insurer why and review your policy for changes. The increase may be the result of tickets, claims, coverage changes, location changes or broader market costs. Compare quotes using the same limits and deductibles before the new premium takes effect.

You can switch car insurance companies anytime, so there is still time to shop around, even if the new rate has already kicked in.

FAQ: Car insurance renewal

What happens if I don't renew my policy and drive without insurance?

If you do not renew your policy and do not buy a new one, you may be uninsured. Driving without insurance can lead to fines, license suspension, registration suspension, and higher future rates. New Hampshire is the only state that does not require mandatory auto insurance for most drivers, but drivers remain financially responsible after an accident.

What is the difference between car insurance cancellation and car insurance renewal?

Cancellation ends your policy during the policy term. Nonrenewal means the insurer will not offer another term after your current policy ends. Both are governed by state law, and insurers must provide the required notice before ending coverage.

Can my car insurance company refuse to renew my policy?

Yes. Your insurer can choose not to renew your policy at the end of the term, but it must follow state law in terms of the reason and the amount of notice required. Reasons can include claims, tickets, license issues, underwriting changes, or market changes.