back to articles | March 09, 2023 | Keith Dean
Categories:   Useful Automotive Information
How To Renew Auto Insurance And Get The Best Rates?
Here are some interesting ways you can save money while renewing your auto insurance policy. Plus a guide on how to renew auto insurance and things to avoid.
Many people make the mistake of assuming that renewing an auto insurance policy is just that; you pay the insurance premium or the pending amount, and your insurance policies are active for the next year. But did you know that there are things you can do to save money and get better coverage when renewing your auto insurance?
Policyholders need to be very careful when the policy renewal date is around the corner. This is the time when you need to get your thinking cap on and start doing things if you want to save money and get a better deal.
Let us elaborate on the entire process of renewing your auto insurance and getting the best rates possible. First, let’s look at how to renew your auto insurance policies and what to avoid while doing so.
How to Renew Auto Insurance?
The entire process of renewing your auto insurance is very easy. There was a time when people had to go through a complicated process and physically visit the offices of these insurance companies to renew their policies.
But in the internet age, everything can be done with just an application and a touch. Your car insurer will send you an email or a message when the renewal date arrives. An email is usually sent 30 days before the policy expiration date.
If you have already enabled automatic payment with a credit card, you do not need to worry about anything. The money will be debited automatically from your credit card, and the policy will be renewed.
If you have not set auto-debit for renewal, then do not fret. The email contains the link for the payments, and you can make the payment either through your insurer’s application or website. Make sure you look at the updated price, as each year policy rates fluctuate.
Auto financing is an important aspect to consider when renewing your auto insurance policy. If you are planning to purchase a new vehicle or need to refinance your current car loan, myAutoloan.com can help you get the best rates and terms for your situation.
What to Avoid?
There are some things you need to avoid while renewing your policies. This will help you from getting into a big financial mess and even save your auto insurance rates from going up.
The first thing you should avoid is not delaying the insurance policy renewal. Many people get an email stating that they have a month to renew their policy, and this leads to procrastination.
What ends up happening is they forget to renew their policy altogether. Any period when you have a car registered to your name but no active insurance policy for it is considered a coverage gap, and it can increase your insurance rates. While you may get a grace period to renew your policy after the expiration date, do not hesitate.
The second thing to avoid is paying money through different websites or giving your sensitive information to someone else. Many scammers call people who are about to renew their policy and claim that they are from the insurance company.
They then get access to sensitive information and scam people. When you are paying for the policy renewal, make sure you are paying through the insurer’s official website or application. Be very careful when it comes to these things.
How to Get the Best Rates?
When the policy renewal date comes, you will get an updated price for the policy. It could be inflated, or it could be low, depending on your driving record and insurance claim history during the policy period.
If you have not made any insurance claim during the policy period, you qualify for no-claims bonuses. Insurers incentivize no-claims by giving discounts to people. This discount can range anywhere from 5% to 50% in some cases.
So make sure you apply this discount while renewing your policy if it is not already applied. But if you have had a car accident and made an insurance claim, forget about discounts, you’ll get a price hike for the same policy. This is where you take a smart step.
Switch Insurance Companies
Since you are already going to pay more for the same policy, why not change your auto insurance company? A lot can change in six months or one year. Many other insurers might be selling better policies at a better price.
The policy renewal period is a great time to look around the market and find better policies, compare different coverage options and find the best insurance policy at the best prices. For example, people who have had a DUI charge or received a speeding ticket can select the insurers which offer the lowest price hike for these traffic violations.
This is your best chance to find great policies and compare different plans. Look here to find the best rates for car insurance policies while getting great coverage options. Compare the price your current insurance company is asking and the prices other insurers are charging. If the price difference is high, go for it.
A word of caution; make sure that if you change your car insurance company, do not cancel your current policy until the new policies are active. There is a high possibility that your new policies might not become active, and if you cancel your old policies, it could lead to coverage gaps.
Also, if you plan on changing the policies, you must do all this a month before and not at the last moment. Coverage gaps are very damaging to your insurance rates, and their effects are irreversible.
Why make policy renewal just about paying the dues and sticking with the same or high insurance rates when this could be an opportunity for you to find better policies at even lower prices? If you are keen on saving money, then make sure you use the policy renewal period to your advantage.