Saving Money on Your Car Insurance Renewal

Published: April 14, 2015

Updated: May 15, 2018



Car insurance rates can change on your renewal for a variety of reasons. If you’ve had a claim or any convictions, your rate might go up, but since different companies have different financial structures and situations, rates can increase for what seems to be no apparent reason.

If you’ve had a ticket or claim since your last renewal, you can still save money by shopping around. Different car insurance companies rate convictions and claims differently, so it pays to compare quotes from different insurance companies if you do see an increase in your rate on renewal.

Insurance companies are required by law to send you information about your renewal in the mail 30 days before the effective date, and you should take advantage of the timing. You’ll have all your documents at hand, so getting a quote with the same coverage and discounts is made much easier.

The Benefits of Switching on Renewal

One of the biggest benefits of shopping around before your renewal is that there won’t be a cancellation fee, as there might have been if you decided to switch mid-term. Sometimes, companies do what’s called “short-rating,” which means they won’t provide you will a full refund; while this isn’t as bad as a penalty fee, you’re still losing money.

As soon as you receive your renewal information in the mail, be sure to start shopping right away. Using a tool to compare quotes from several different insurance companies is important, as it’s the only way you can see exactly how much you can save by switching. You want to give yourself the most options, and our instant quoting tool compares quotes from up to 15 different companies.

You Get the Information in the Mail…What’s Next?

Once you receive your renewal package in the mail from your previous insurer, use our quoting tool to find the best rate. Once you submit the quote, and indicate that you’d like to go ahead with it, one of our licensed insurance brokers will contact you to discuss the rate and any additional coverage you might need (or not need).

Our broker will guide you through all the necessary steps to ensure you’re getting the right coverage and saving the most money possible. We work independently from insurance companies to provide an unbiased opinion on which company and level of coverage suits your needs best, and we’ll look for gaps in your existing coverage that could leave you exposed in an accident.

Take a look at our other guides, or head over to our instant quote tool to start saving today!