Many of us are now getting our auto insurance renewal letters. Some people have seen a modest increase in their premiums, while others are facing jumps of up to 10%. The truth is, even if you have never been in an accident or had any moving violations in the past, you can expect your premium to increase. This means that you need to know how to handle the changes to your policy so you can avoid unnecessary surprises.
The insurance company will send you a renewal letter approximately four to six weeks before the end of your term. It will include the new premiums and policy terms. You can choose to have your insurance renewed automatically, pay in full before the expiration date, or pay in monthly installments. However, if you’re not satisfied with the renewal offer you received, you can shop around for a better deal.
The process of auto insurance renewal should be as easy as possible. The insurer will send you an updated quote with the same limits as your previous policy, a new ID card, and a new premium. As long as you pay your premium regularly, you should be able to avoid any surprises. However, it’s important to read the renewal offer carefully.
If you’ve accidentally neglected to pay your premium, you may have to pay the premium again. Your insurer will also charge you a cancellation fee if you cancel mid-term. You can also make a request for a cancellation letter online. You’ll need to know the details of the policy and the premium payment due date before you can cancel it.
Standard car insurance policies are good for a year or two. Typically, they last for six months or twelve months. After you purchase your policy, you’ll pay your premiums for the duration of the term. There are some exceptions, but they’re worth looking at if you’re planning on making changes.