How to Renew Auto Insurance Policy?

Renewing an auto insurance policy is easy. Most insurance companies send you a notice 30 to 45 days before your renewal date. If you’re on automatic renewal with automatic payment, you may not need to do anything. However, L.A. Insurance always recommends reviewing your insurance policy before paying the new premium amount.  

Why? Because your car insurance coverage or auto insurance policy may change. Rates can increase, discounts can expire, and new options might save you money. And if you ignore these details, you risk paying higher premiums or keeping the wrong insurance coverage.  

In this article, you’ll learn how to renew car insurance, how to avoid a lapse in coverage, and how to switch car insurance coverage if needed. On top of that, you’ll find answers to common renewal questions like what happens with an expired car insurance policy, how to cancel auto-renewal insurance, and when it makes sense to stay or move to a new provider.

What Questions Should I Ask Myself Before Renewing My Car Insurance Policy?

According to a 2022 survey, 92% of policyholders who switched auto insurance companies during their most recent renewal period ended up saving money. Still, 39% of consumers proceed with the renewal process under the impression that their current insurer is offering the best rates.  

Clearly, the decision to renew a car insurance policy is not an uncommon one. That brings us to a crucial point of reflection. What should you take into account, or more importantly, what should you ask yourself before making the final call to renew your auto insurance policy?  

Well, ask yourself the following questions before you agree to the new premium amount:  

1.  Did My Premium Go Up?

Sometimes your car insurance rates increase even if nothing has changed. If this happens, ask your insurance company why. Your driving record, claims history, or even where you live can impact your car insurance rates. 

2. Do I Still Have the Right Coverage?

Look closely at your auto insurance coverage. Do you still need collision coverage on an older car? For example, a 10-year-old car might not require collision coverage anymore. Also, reconsider whether you should increase your liability insurance in case of a serious accident. Plus, check if your deductible still makes sense for your budget.  

At least look at the following types of car insurance coverage and what they cover while making this decision: 

• Liability auto insurance 
• Collision insurance 
• Comprehensive car insurance 
• Full coverage car insurance

3. Have My Driving Habits Changed?

Do you drive less now? Maybe you started working from home or moved closer to the office. Lower mileage could mean you qualify for discounts and save money on your car insurance premium.  

4. Have There Been Any Major Life Changes?

New car, new home, or a new driver in the family? These all affect your auto insurance policy. A new vehicle may need better car insurance coverage. A new teen driver will likely increase your premium amount.  

5. Am I Getting All the Discounts? 

Ask your insurance provider about safe driver discounts, bundling with home insurance or life insurance, or even student savings. These can cut down on higher premiums.  

6. Do I Want to Switch Car Insurance?

If you’re unhappy with your insurance company’s service, it may be time to compare auto insurance providers. Many people think that they should stick with their current insurer, but switching auto insurance companies can sometimes lower costs and improve coverage.  

12 Easy Steps to Renew Your Car Insurance Policy

Don’t get overwhelmed by seeing that you need to follow 12 steps to renew your insurance policy. In fact, it can be done by making just one phone call to your insurance company. Because most renewals take minutes, and online is the fastest. Automatic renewal with automatic payment is usually instant. 

However, this way you might miss a lot of things, including the opportunity to renegotiate your car insurance premium. Also, you might keep carrying car insurance coverage you don’t need anymore and end up paying extra money. 

To make sure you reap all the opportunities during your auto insurance renewal, try following all these steps: 

Step 1: Find Your Renewal Date and Notice 

Open the email or letter from your insurance company. Note the renewal date and premium amount. Mark a reminder so you avoid a lapse by using the Calendar App or Google Keep. Please note that you can also find your policy’s expiration date on the declaration page. 

Step 2: Review Your Current Coverage

Open your insurance policy and check limits. Look at liability insurance, collision, and comprehensive. Confirm your deductible still fits your budget. If you’ve purchased one of L.A. Insurance's affordable full coverage auto insurance, and you want to drop a few coverage options on your old vehicle, simply let your insurance agent know about it.  

Learn more: How much coverage do I need for auto insurance?  

Step 3: Update Life and Driving Changes (If Any)

Tell your insurer about a move or a new car you purchased. Add a new driver if needed.  Share lower miles or a shorter commute to save money.  

Step 4: Check Discounts Again 

Ask about safe driver and multi-policy savings. Bundling home insurance or life insurance with your auto policy can help lower your new premiums. Add roadside assistance only if you need it.  

Step 5: Verify Personal and Payments Details 

Confirm your address and drivers. Make sure the card for automatic payment is current. Outdated cards can cause a lapse in coverage.  

Step 6: Compare Quotes Before You Pay

The majority of the policyholders don’t even request quotes for auto insurance while renewing their policy. But that’s not the way to move forward. You should shop for car insurance online for a few minutes, and then you can be sure that the coverage you’re getting from your current insurer is value for money. And you can switch car insurance companies if a new offer during renewal doesn’t seem better. Please note that rates can vary by driving record, credit history, claim history, and location.  

Step 7: Choose How You Want to Renew

If you decide to stay with your current insurer, it’s time to choose the method of renewing your auto policy. Use the app or website for quick pay. You can call your insurance agent if you want advice. Keep automatic renewal on only if you’re happy with the terms.  

Step 8: Pay and Confirm Proof of Insurance

Submit payment and download your auto insurance ID Cards that verify you’ve the valid car insurance coverage. Check that the policy term shows 6 or 12 months. And save a copy in your glove box.  

Step 9: If You’re Not Renewing, Line Up a New Policy

Never cancel without a replacement. Most states require continuous auto insurance coverage. Start the new auto insurance policy before you end the old one.  

Step 10: If You Missed the Date, Act Fast

Call your insurer about car insurance lapse and grace period, which is typically between 15 to 30 days (If available). You may be able to reinstate and avoid a lapse. If not, buy new auto insurance right away.  

Step 11: Know Why Prices Changed 

Ask how underwriting assessed your risk. Tickets, claims, or a new driver can raise car insurance rates. Adjust coverage to control your car insurance premium.  

Step 12: Save Your Setting for Next Time 

Set calendar reminders for renewal. Keep your info updated in the app. We recommend that every driver review their car insurance coverage twice a year for fresh insights. 

Now you know how to renew your auto insurance policy. Still, you might have lingering questions about the process, like what happens if you don’t renew, how to know when it’s time to renew, and more. Let’s address those here as well.  

How Do I Know When to Renew My Auto Insurance? 

As we already mentioned, most auto insurance policies last 6 or 12 months. Your insurance company will send a renewal notice 30 to 45 days before the policy ends. This notice shows your new premium amount and any changes in insurance coverage. Always mark the renewal date so you don’t risk a lapse in coverage.   

Also, you can go for the renewal if you see: 

• Premium didn’t increase 
• Your coverage remains the same or improves 
• No major changes in terms and conditions 
• You’re satisfied with the customer service and claim process 
• You have compared other options, but your current policy still offers a good value.

And if you see the opposites of these, you shouldn’t renew your policy. Rather, you should try to find coverage that is value for money.  

What If I Drive Without Renewing My Car Insurance?

Regardless of the state you’re living in, driving without valid car insurance is a punishable offense. If you don’t renew on time, it means you’re not carrying valid auto insurance, which is a direct violation of state laws and considered illegal.   

And as a consequence, you might face hefty fines, vehicle impoundment, license suspension, SR-22 or FR-44 certificate, or jail time. On top of that, if an accident occurs while you’re uninsured, you’ll have to pay for damage and personal injury out of pocket.   

The lapse in coverage you’ll create here will not be overlooked by your insurers, and they will most likely charge you higher premiums when you buy a new auto insurance policy after letting coverage expire. 

Is It Possible to Renew Auto Insurance After It’s Expired?

Yes, you can usually renew an expired car insurance policy, but timing is important. Many insurance companies offer a short grace period, usually 10 to 20 days or 15 to 30 days, to make a payment and keep your insurance coverage active. If you miss this window, your policy may be canceled, and you’ll need to buy a new one.  

Remember that not renewing on time can create a lapse in coverage, which brings problems. You could face higher premiums, trouble finding affordable auto insurance providers, and legal penalties if you drive uninsured. 

So, if your policy has already expired, contact your insurance agent right away to see if reinstatement is possible. If not, shop for a new auto insurance policy immediately to restore protection.  

What If I Decide Not to Renew My Policy? 

You’re not required to renew your auto insurance policy, but you can’t drive without coverage. So if you don’t plan to renew, notify your insurance provider before the renewal date. This is very important, particularly in circumstances where you have automatic renewal or automatic payment, since you could be charged for the next term.  

Before canceling, line up a new car insurance policy with another insurance provider. Most states require continuous vehicle insurance, and driving without it can lead to fines, suspensions, or higher premiums later. So, you should make sure your new policy starts the same day your old one ends to avoid a lapse in coverage.  

Times When You Shouldn’t Renew Your Auto Insurance 

Your premium amount keeps rising without clear reason. 

• Your insurance company has poor customer service or delays in claims 
• You found better insurance coverage or lower car insurance rates with another provider 
• You no longer need certain coverage, like collision on an older vehicle 
• Your insurer denied a fair payment after an accident or damage 
• You don’t own or drive a car anymore

But it’s not always your decision. Sometimes, if you file too many claims for at-fault accidents or DUI tickets, your insurer may not want to renew your policy.  

How Do I Cancel Auto Insurance Renewal?

You can stop auto-renewal on your car insurance policy. You can do so by giving your insurance company proper notice before the renewal date. Some insurers require a written cancellation letter, and others may allow you to cancel online or by calling your insurance agent. If you’re enrolled in automatic payment, confirm it’s turned off so you don’t get charged for the new term.  

The best time to cancel is when you already have a new auto insurance policy lined up. That way, you can avoid a coverage lapse and stay legally compliant.  

So, here are the quick steps to cancel: 

• Contact your insurer early 
• Ask about required forms and fees 
• Confirm cancellation in writing 
• Match your new policy start date with your old policy’s end date

Also Learn: Can you cancel auto insurance claim after filing it?  

Things to Do to Make the Auto Insurance Renewal Process Easier Next Time

You don’t need to take on unnecessary stress for something that can be handled with ease. Just a little preparation can save you from unwanted hassle when the time comes. Here are the simple steps to help make your auto insurance renewal process smoother next time: 

• Set reminders on your phone or calendar a few weeks before renewal. 
• Review your insurance policy twice a year to keep coverage updated. 
• Keep payment details current so automatic payment doesn’t fail. 
• Shop for car insurance online quickly to compare auto insurers. 
• Try to keep a clean driving record to avoid higher premiums at renewal.

How to Renew Your Auto Policy with L.A. Insurance

Renewing your car insurance policy with L.A. Insurance is quick and easy. You can renew automatically if you’re set up on automatic payment, renew online through our website, or simply call your local insurance agent for personal help and guidance.  

Whether you’re in Michigan, Texas, Colorado, Florida, or Georgia, we provide affordable car insurance. And our team is always here to guide you through the renewal process, answer your questions, and make sure your car insurance policy matches your needs.  

Learn More: How long does it take to get car insurance?  

Frequently Asked Questions (FAQs) on Car Insurance Renewal Process

Will my car insurance go up after renewal?  

Yes, it might. Many drivers see higher premiums after renewal because of changes in claims, inflation, or personal factors. If your rate rises, ask your insurance company why and explore discounts or other auto insurance providers. 

Why do many people face higher rates after renewing their auto insurance? 

Renewal rates often increase due to updated underwriting. A new ticket, an accident, or even higher repair costs in your area can push prices up. It feels unfair sometimes, but you can still shop around to save money.

How can I change my auto insurance policy before renewal? 

You can contact your insurance agent or update your plan online before paying the renewal. Adjust your insurance coverage, raise or lower your deductible, or add benefits like roadside assistance to better fit your life.  

Why is the auto-renewal of car insurance not good for many policyholders?  

Automatic renewal feels easy, but it can hide rising car insurance rates. You might pay more without noticing or miss out on discounts. Reviewing your policy every term ensures you’re not stuck with unnecessary costs.   

When's the best time to renew your car insurance?  

The best time is a few weeks before your renewal date. This gives you time to compare car insurance companies, check for discounts, and decide whether to switch car insurance or stick with your current insurance provider.  

Does your car insurance go down when you renew it? 

Sometimes. A clean driving record, fewer miles, or better credit history can lower rates. But not always. If your premium doesn’t drop, it’s worth asking your insurer for insights or getting new auto insurance quotes. 

Can you negotiate an auto insurance renewal?  

Yes, and it’s worth trying. Call your insurance company and ask about discounts or ways to lower your premium amount. You may not always win, but it shows you care about your policy and your wallet.  

Is renewing car insurance worth it?  

Yes, unless you’ve found better auto insurance coverage elsewhere. Renewal keeps you compliant with what most states require and protects you financially. But review your policy closely before committing, so you know it’s the best fit. 

Does your car insurance automatically renew?  

Most car insurance policies include automatic renewal, especially if you’re enrolled in automatic payment. Still, double-check your notice if you want to avoid surprises. If you don’t want it renewed, contact your insurance provider before the date to cancel. 

How much does it cost to renew car insurance?  

There’s usually no extra fee to renew. You just pay the updated car insurance premium. And the cost depends on your insurance coverage, vehicle make and model, location, and driving history. If your new rate feels high, compare offers to change car insurance.