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Always compare quotes before renewing your auto insurance

By SmartCoverage Team on December 5th, 2018

Every time your insurance policy comes up for renewal, your provider will take another look at a range of personal factors to determine your insurance risk and premium.

An insurance agent will review your age, vehicle type, credit history, driving history, location, average commute, and even your job in order to set the cost of your monthly auto insurance bill. They’ll also look to see if you’ve received any traffic tickets or driving infractions over the length of your coverage.

Before signing up for a new coverage term with the same provider you’ve always had, it’ll pay to shop around and compare rates.

How often do renewals happen?

For every coverage term, you’ll be insured for a standardized length of time without your insurance company changing your premium. If you meet all underwriting guidelines, you should have a consistent bill to pay before your coverage expires.

Some auto insurance policies will last one calendar year from the date you received coverage; others may renew semi-annually. You should get a letter in the mail or an e-mail 30 to 45 days before your policy officially expires, notifying you of its approach.

What should I be doing before my policy renews?

It’s a great time to review your policy during those 30 to 45 days before your previous plan is set to expire. You can verify policy details, add or remove additional coverage, apply new discounts or add a secondary driver to your policy.

Those 30 to 45 days also gives you quite enough time to shop around for another insurance provider that may be able to give you a better rate on your premium. Other insurance providers could specialize in coverage for electric vehicles while another one could offer more discounts for commercial enterprises.

Neglecting to shop around for a better insurance rate is doing a disservice to yourself and your wallet. You could end up missing out on a great auto insurance deal offered by another company in your area.

To be fair, there are certain perks afforded to customers who stick with the same auto insurance provider as a loyalty bonus, but loyalty points could take decades to reveal any real savings.

Compare quotes before you renew

Most insurance companies offer bundled coverage, so if you’re fearful of breaking a bundled package from your main insurer on one side, it doesn’t mean that you can’t get a similar or cheaper bundled package from another insurer.

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