There are various options for car insurance renewal. Sure, when you get the letter from your current insurers, you can just go for car insurance auto-renewal. But would it be cheaper to hunt around? Or is there a better discount for your loyalty? The truth is, both could be true. In this article, we’ll lay out some of the reasons.
Here are some common FAQ’s on Insurance.
What Is Car Insurance Auto Renewal?
You’re probably reading this because you’ve just got that notorious car insurance auto renewal letter.
Maybe this year’s premium is a lot higher than last year’s, and you’re wondering if you can move to a different supplier without getting charged a premium.
Well, car insurance auto-renewal means that the coming month’s insurance will automatically be debited from your bank account without you having to do anything!
Convenient – but this can come at a price.
As we mentioned, your upcoming premium could easily be way higher than you were expecting.
Do I Have Car Insurance Auto Renewal?
Unlike temporary car insurance, most car insurance policies usually have car insurance auto-renewal.
You can’t take this for granted, so always pay close attention to your insurance documentation and paperwork to check that you have car insurance auto renewal so that you don’t accidentally drive around with no insurance cover.
Will I Have to Pay a Car Insurance Renewal Fee?
Suppose your policy does turn out to have car insurance auto renewal and you renew after your policy’s car insurance auto-renewal, then yes. In that case, you will be charged a car insurance renewal fee.
But if you make sure to renew before your date of car insurance auto-renewal, you usually shouldn’t have to pay a car insurance renewal fee.
Can I Save Money By Staying With My Current Expired Car Insurance Renewal Provider?
You might indeed save some money by proving your loyalty and staying with your current expired car insurance renewal provider.
But unless you know for sure that this is a feature of your insurance, unless your insurance has a dedicated loyalty scheme, it is unlikely that you will get any great benefit from staying with your current expired car insurance renewal provider.
It’s always a good idea to ask them this question, and they may give it to you, just for the asking, especially if you have found a cheaper provider—this is called Price Match.
Will I Save Money By Changing to a Different Car Insurance Renewal Provider?
Suppose your current car insurance renewal bill has come in, and it’s steeper than you expected, then yes. In that case, changing to a different car insurance renewal provider should help you save a lot of money on your next car insurance renewal.
However, there are a few scenarios where this may not be true.
For example, perhaps you’ve started driving to a new place all the time, possibly for work, and your mileage has increased drastically.
In this case, you can also expect your car insurance renewal premium to increase accordingly.
Or maybe you had been in a car accident earlier this year.
Suppose this is so, and the car accident was not your fault. In that case, it is normal for your car insurance renewal price to increase temporarily, regardless of the car insurance renewal provider.
But if the accident is seen as being your fault, your car insurance renewal premium will usually go up for longer, regardless of the provider.
Why Was My Car Insurance Renewal Declined?
Are you facing car insurance non-renewal from your current car insurance renewal provider?
Car insurance non-renewal is common enough, even if your car insurance has auto-renewal.
But why does it happen?
One primary reason for car insurance non-renewal is changing your insurance history or driving record.
For example, as we previously mentioned, if you were in a car accident that was your fault, this may cause car insurance non-renewal.
However, a couple of other things can cause car insurance non-renewal.
For example, car insurance non-renewal can result from a conviction of a major traffic violation or filing too many claims against your car insurance renewal provider.
Can I Change My Car Insurance Provider Before My Car Insurance Renewal Date?
You can change your car insurance provider anytime, not just when your car insurance comes up for renewal.
However, deciding to change your car insurance provider before your car insurance renewal date often results in you paying an administrative fee or a penalty.
Changing your car insurance provider before your car insurance renewal date also means that you will have to work with your car insurance provider’s cancellation procedure, which can be quite complicated.
So yes, you can change your car insurance provider before your car insurance renewal date.
But the fees you may have to pay and the complicated car insurance cancellation procedure you may have to deal with make changing your car insurance provider early quite prohibitive.
Should I Change My Car Insurance Provider?
Just because changing your car insurance provider before your car insurance renewal date can be complicated and expensive doesn’t mean that it always is.
Every year when your renewal letter comes in, you should always take that opportunity to look around for a better deal on your car insurance renewal, even if the price seems fine to you.
Sure, you could stick with your current provider’s car insurance auto-renewal.
But it doesn’t hurt to at least find out what other options are out there.
Can I Get Temporary Car Insurance?
With the unwanted rolling subscription of permanent car insurance’s auto-renewal and the steep fees you often have to pay when you want to cancel early, permanent car insurance is not for everyone.
But can you get temporary car insurance?
It is very difficult to obtain temporary car insurance for the term’s true meaning anywhere in Canada.
Instead, drivers who want a shorter car insurance contract are forced to hunt for a six-month contract as the shortest period.