Car Insurance Rate Goes Up On Renewal

Published: August 31, 2015

Updated: May 15, 2018



While this is not the case for many people, for some it is. There are myriad reasons why rates change when your car insurance is ready for renewal, such as a claim you have made or any convictions received during the term of your policy.

Different insurance companies have different criteria for assessing financial structures, and it does seem sometimes as if rates rise for no reason at all. A conviction (such as a speeding ticket) or claim since your last renewal could work against you, but shopping around for a good deal is still worth your time and effort. Many people make the mistake of just sticking with their current insurer without thinking to search for an improved premium elsewhere.

Car insurance companies all have different ways of dealing with renewals, even if convictions and claims are involved, so it really is a good plan to compare quotes across companies to see if you can cut a good deal for you.

It is the law in Canada for insurance companies to tell you about an upcoming renewal 30 days before the date of your current policy ending. Your company must tell you all the relevant information, and this is ideal because it gives you a month long window to look for another car insurance quote, or indeed decide to stay with your current provider. With all your documents at hand you will be able to receive quotes based on the same coverage and discounts.

Should you switch companies on renewal?

Not necessarily, but it should definitely be an option you are open to. When looking for another company at the end of a current policy, you do not have to worry about cancellation fees as you would switching mid-policy.

As mentioned, your renewal details will come to you 30 days before the end of your coverage, so you should waste no time in shopping around. Using our comparison tool is a great way to see a wide list of providers and quotes, so you can see exactly how much you could save by switching. The idea is to give yourself the power and as many options as possible, and that’s exactly what out comparison tool is for.