How to renew your car insurance and when it’s not a good idea

Renewing your car insurance is easy. But if you let it auto renew before taking the time to compare your options, you could end up paying too much.

How to renew your car insurance

Before it comes time for you to renew your policy, your insurer will send you a renewal notice. This normally happens at least 30 days before your policy is due to end. On this notice, it’ll let you know how much your premium is going to be for the next year.

You’ll then have several options to renew your insurance if you want to stay with the same company.

Renewal options

The steps involved in renewing your car insurance will vary depending on both how you choose to renew your policy and the options available through your insurer. Generally, you’re able to renew:

• Automatically. If your policy is signed up for auto renewal, your insurer will withdraw money from your payment method on file and renew your insurance for another policy period automatically. Your renewal letter will generally mention if you’re signed up for auto renewal. If you are, and you don’t want to renew your insurance, you’ll need to contact your insurer to cancel it.
• Online. Most insurers allow you to renew your policy online through its website or on your insurance company’s app.
• Over the phone. If you’d prefer to renew your policy while speaking to a person, many insurers have representatives that can help you with the renewal process over the phone.
• In person. If your insurer has branches, you can head into their physical to and renew your policy.

When is it better to renew my insurance?

You might be better of keeping your current insurer in a few cases.

• You’re happy with your current insurer.
• You can’t find cheaper insurance quotes when shopping around.
• You have a great loyalty discount or accident forgiveness perks.
• You haven’t experienced a major life event that would lower your rates, like improving your credit or hitting a big age milestone.

Is it better to renew my insurance or switch to a new insurer?

Whether you should renew your insurance or switch your car insurance depends on whether you like your current insurer and how good of a deal it’s giving you. To get the best deal, it’s usually a good idea to get quotes from other insurers and compare them to your current insurer.

When comparing insurers, consider:

1. What kind of coverage you have. Before comparing different insurers, check what kind of coverage you have now so that you can compare other similar policies.
2. The price. Get quotes from other insurers for the same amount of coverage and find out which insurer offers the best price. If you’re thinking of adding more coverage or getting rid of some of your extras, make sure you get a new quote from your current insurer, too.
3. Loyalty and bundling discounts. Some insurers will offer you a discount if you’ve been with the same company for an extended period of time or if you have multiple insurance products with the same company, you may be getting a discount. Factor in how much you’ll lose — both on your car insurance and on your other insurance products — before switching.
4. Other discounts. Each insurer offers different discounts for car insurance. Find out what discounts you’re eligible for with each insurer to get the best price.

Switch car insurance policies

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Name	Product	Gap insurance	Homeowner discount	Telematics	Has an app?	Available states
Progressive		loan/lease coverage	Yes	Snapshot	Yes	All 50 states & DC	Discover coverage that’s broader than competitors, valuable discounts up to 30% off and perks like shrinking deductibles that reward no claims.	Get quotes More Info	Compare	loading Fetching your data...
The Zebra		Yes	Yes	Yes	Yes	All 50 states	Get quotes More Info	Compare	loading Fetching your data...
USAA		No	Yes	SafePilot	Yes	All 50 states & DC	Affordable car insurance with highly rated customer service. Only available to military members and veterans and their family.	Get quotes More Info	Compare	loading Fetching your data...
Liberty Mutual		Yes	Yes	RightTrack	Yes	All 50 states & DC	Earn free accident forgiveness after five years claims-free and customize your policy anytime.	Get quotes More Info	Compare	loading Fetching your data...
Bankrate		Yes	Yes	Yes	Yes	All 50 states	Compare personalized rates from multiple insurance companies in one go. Plus, access a live agent for any questions along the way.	Get quotes	Compare	loading Fetching your data...
Quinstreet - Insure.com		Yes	Depends on provider	Depends on provider	Depends on provider	All 50 states	Get quotes	Compare	loading Fetching your data...

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Bottom line

Renewing your car insurance is usually pretty easy — but it might not get you the best deal. Before renewing with your current insurer, compare other car insurers to find out which one offers the best price.

Frequently asked questions about car insurance renewals

• How much will my car insurance go up at renewal time?

  Car insurance is a personalized product that takes into account variables ranging from your age to where you park your car at night. This means that there’s no average percent that you should expect your premiums will go up.

  Generally, if you got into an accident or moved, your rates will increase dramatically. But even if nothing has changed, outside factors — like accidents in your area and the insurance company’s profits — can cause your rates to rise.

  But if you qualify for a new discount, like a no-claims discount, your rates may fall. Talk to your insurer to learn more about what goes into rate changes.

• Should I auto renew my policy?

  Generally no — but it’s a good option to have as a failsafe. Auto renewing your policy doesn’t always give you the chance to shop for a better deal with a new company. But it can prevent you from accidentally driving uninsured, which is illegal.

  One good option is to enroll in auto renewal, but cancel it if you find a new company that offers a better deal.

• Can I cancel my policy before it ends?

  Yes, though in some cases you may have to pay a fee or continue for the rest of the month. Contact your insurer to learn more about canceling your policy.

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