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.
It’s fairly simple and straightforward to renew your auto policy. Here’s what the process entails:
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
Policy cancellation and non-renewal are different.
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.
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.
The following information can help answer your remaining questions about auto insurance renewals.
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.
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.
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.
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.
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.
)
At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.
We do receive compensation when a sale or referral occurs from many of the insurance providers and marketing partners on our site. That may impact which products we display and where they appear on our site. But it does not influence our meticulously researched editorial content, what we write about, or any reviews or recommendations we may make. We do not guarantee favorable reviews or any coverage at all in exchange for compensation.
)
Licensed auto and home insurance agent
3+ years experience in insurance and personal finance editing
NPN: 20564519
Featured in
){kind=small}
){kind=small}
)
)