Guide to Car Insurance Renewal

Most auto insurance policies come up for renewal every six months; here's what to do when the time arrives.

Location pin icon
No junk mail. No spam calls. Free quotes.

Why you can trust The Zebra

The Zebra partners with some of the companies we write about. However, our content is written and reviewed by an independent team of editors and licensed agents. Reference our data methodology and learn more about how we make money.

Author profile picture

Renata Balasco

Content Strategist

Credentials
  • Licensed Insurance Agent — Property and Casualty

Renata joined The Zebra in 2020 as a Customer Experience Agent. Since 2021, she has worked as licensed insurance professional and content strategist.…

Author profile picture

Beth Swanson

Associate Content Strategist

Credentials
  • Licensed Insurance Agent — Property and Casualty

Beth joined The Zebra in 2022 as an Associate Content Strategist. She is a licensed insurance agent whose goal is to make insurance content easy to r…

Your guide to car insurance renewal

When the end of your car insurance policy approaches, you have two choices: renew this policy or shop for a new one. Here’s how to deal with car insurance renewal and what happens if you can’t renew your policy.

Key Takeaways

  • Most insurance companies offer auto-renewal, which makes the process convenient and low-hassle
  • You should get notified about a month before the policy term is up and you'll be sent new policy documents to review
  • If a company is not renewing your policy, they must notify you 10 days prior to the policy term expiration date
  • You can always compare rates from other companies to make sure you're getting the best rate

How to renew your car insurance policy

Most car insurance policies have a policy period lasting either six or 12 months, depending on the length the company offers and for which you signed up. The last day your policy is effective is called the expiration date, and at that point, you can renew your policy. Most auto insurance companies offer automatic renewals, meaning that if you wish to continue coverage, simply take no action to stop the renewal and continue making your payments. If you are enrolled in autopay, the insurer will take your scheduled payment via the method on file (your credit card, checking, savings or debit information). As long as you are in good standing, your car insurance company is likely to automatically offer you a policy for the next term. This is convenient for many, as it is low-hassle; it's not necessary to fill out any more paperwork or take any action to ensure that they remain covered.

calendar

Typically, about a month before your policy’s expiration date, your insurance provider will contact you with your renewal offer, with the same limits and parameters of the policy that you previously enjoyed. This message will contain your new policy documents: the new effective dates, the new declarations page and ID cards, and your new car insurance premium. Making your regular payment signals the insurer to automatically renew your policy and continue covering you. The possible danger in automatic renewals is that car insurance premiums can increase without you noticing, even if there is no change in coverage or driving history. It’s important to read the terms of the renewal offer carefully before the new policy begins.


How to decline the offer to renew your car insurance plan

If you do not wish to continue coverage with the same insurance company, you must decline the renewal offer and apply for a new policy with a different carrier before the current policy’s expiry date. Contact your provider to let them know to end coverage on the expiration date of your current policy. Before the end of your auto insurance policy, you’ll need to shop around for a new policy with a new insurance carrier. The new car insurance plan should begin the same day as your policy end date, as the previous policy will stop coverage at 12:01 a.m. on the expiration date (insurance policies begin and end at 12:01 a.m. on any given date). As long as your new policy’s effective date is the same day as your old policy’s expiration date, you will avoid a lapse in coverage.


What happens if I don’t renew my policy and my coverage lapses?

If you begin your new coverage any time after the expiration date of the previous policy, there will be a lapse in coverage. You want to avoid a lapse in insurance coverage for several reasons:

  • You are unprotected throughout the lapse period.
  • A lapse in coverage can lead to higher premiums down the line.
  • New insurance companies might offer discounts for continuous coverage over a certain length of time; if you lapse, you will not be eligible for this discount.
watch

If your insurance provider does not automatically renew your policy and you let your policy expire before purchasing another, you will also experience a lapse in coverage. From the day your policy expires to the effective date of a new policy, you will not be covered and should not drive your vehicle. If you decide you want to renew your previous policy after all, your insurance agent may be able to reinstate your policy, though you may be subject to a penalty fee. If reinstatement is not an option, it’s time to shop for car insurance online.


What happens if my insurance company decides not to renew my policy?

If your insurance company decides not to offer you a policy renewal — whether it be because of payment inconsistency, insurance claims or moving violations — the company must inform you that your policy will not be renewed 10 days prior to your expiration date. This gives you time to shop for a new policy and avoid any lapse in coverage.


Car insurance cancellation vs. nonrenewal: what's the difference?

There is a difference between cancellation and nonrenewal, but both result in the end of coverage. Cancellation can occur at any point throughout the policy, and when issued by the insurer, is often the result of fraud or nonpayment. The insured can cancel a policy at any time without providing a reason. The auto insurance company must give notice to the insured if they are canceling coverage, and they also must provide the reasons for cancellation.

Nonrenewal occurs at the end of the policy term. If issued by the insurance company, it means they decided not to cover you for another term and are voiding coverage on the last day of your policy period. The insurer must provide notice to the insured, while if the insured decides not to renew, no advance notice is required.


Why did my car insurance rates increase?

It is always possible for insurance rates to increase, even if you did not have any claims, accidents or violations. Insurance rates increase and decrease with industry trends. If the insurance company’s policyholders experienced a lot of losses in the last six months and the company is losing money, they may raise their premiums for even good drivers to recoup those losses. If you are unable to accommodate a rate increase, you are always able to compare auto insurance rates with several companies to find a new policy.

Overall, renewing your car insurance is a relatively simple process. While most companies automatically renew, you will always receive some sort of notification once your policy is about to expire. Make sure to read the terms of your renewal offer carefully to ensure that all information is accurate and limits are set to your preferences. If at any time you need to shop around for a new insurance policy, The Zebra is here to help.

question mark magnifying glass

Find car insurance today by comparing rates online.

Location pin icon
No junk mail. No spam calls. Free quotes.

RECENT QUESTIONS

Other people are also asking...

If I cancel a policy less than 24 hours after starting it, will I get a refund?

The state of Florida requires that insurance companies refund at least 90% of the unearned premium paid by a customer if they receive a request to cancel. There are instances where a company may include the policy's fees within the first month so your refund can vary depending on which company…

Will my down payment be refunded if I cancel my insurance during the first month?

There is no guarantee of a refund, so you would have to contact your insurance provider to find out if you are eligible for a refund as each company operates a bit differently with policy cancellations in the first month of coverage. The same thing goes for whether or not they will notify your lien…
Dec 31, 2016 Dace City, FL

Should I cancel my policy if I sold my vehicle and won't be getting another car for a month?

Canceling your auto insurance when you sell a vehicle sounds like a good idea until you realize the potential pitfalls of doing so. While it may not make sense to maintain auto insurance when you no longer own a vehicle, consider the fact that you still have to have insurance to test drive a vehicl…
Mar 9, 2016 Lincoln, NE

Can Esurance deny a refund if I forgot to cancel my policy when I switched to a new company?

This sounds like an company issue and not a state law. Insurance companies in Illinois are legally required to issue refunds for "unearned premium", but you didn't prepay your bill. Long story short, they only have to repay the portion of your premium that extends past the cancellati…
Mar 8, 2017 Addison, IL

About The Zebra

The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.

  • The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
  • The Zebra’s insurance content is not subject to review or alteration by insurance companies or partners.
  • The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
  • The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.