Each year, you have the opportunity to refresh your home and auto insurance policies. Your insurance company will contact you about your policy renewal. All you need to do is pay your premiums and you have insurance coverage for another year. It’s a simple process, but you may want to consider your options before your insurance coverage policy renews.

A survey conducted for the Financial Services Commission of Ontario found that 52% of Ontario drivers have automatically renewed their coverage without exploring other policy options. If you want to save money on insurance, it’s good to do some research to make sure you have the best possible rates before you renew your current policy.

Your Insurance Policy Renews Every Year

Most insurance policies provide coverage for a year-long term. Many companies bill their customers annually to correspond with each insurance cycle, meaning that your policy’s renewal date occurs a year after your policy’s effective date in the previous year. Your insurance company will likely contact you one to two months before your annual renewal date.

You should review your new policy’s updated terms and price. You may notice that your rates are higher or lower than what you paid for the previous year’s coverage, and that’s normal—variations in your insurance rate can be due to changes in your driving record or your insurance claims. Changes in prices can also be due to insurance market factors that are out of your control.

Every penny saved on insurance can go toward rainy day funds, education funds, so it’s worth checking.

Policy renewals are an opportunity to update your info and potentially score a lower rate.

Your insurance company considers many factors when they calculate your car insurance rates. Factors like what you drive, who drives your vehicle, how often you drive, and even where you live are necessary to take into account before renewing your auto insurance.

Circumstances that can affect how much you pay for insurance each year include:

  • Improvements on your driving record can lower your rates. For example, if an accident is removed from your driving record after six years.
  • Are you adding a student driver to your insurance when your child gets a licence? Unfortunately, this will increase your rates.
  • On the flip side of the previous situation, if your kid moves out for university, you’ll likely see a pleasant drop in your auto insurance premiums.
  • Buying a new car can impact what you pay for insurance for various reasons, so you should always let your insurer know before your policy renews.
  • Renovating your home or adding upgrades to your vehicle can change your insurance rates as well. Adding security and safety features like alarm systems and winter tires can also make you eligible for insurance discounts.
  • Have you recently become a homeowner? Bundling multiple insurance policies can help you save money. It’s common to get a better deal when you bundle your home and auto insurance coverage.
  • Do you have two vehicles covered under separate insurance policies? Combining them under one policy is another way to save money on insurance when you renew your policy.
  • Commuting distance can also affect your car insurance rates. If you’ve changed jobs, retired, or moved closer to work, you can expect to see a corresponding change in the auto insurance rates an insurance company will offer.

To ensure you’re getting the best possible deal on your insurance, you should speak with your provider about additional discounts based on your changing needs and circumstances.

Is there a penalty for switching at renewal time?

The short and sweet answer is: no.

That’s why the period before your policy renewal date is the best time to re-evaluate your insurance coverage. Comparing multiple quotes from several different insurance companies in the days before you renew your policy can be crucial to saving money.

If you find a better price and cancel your policy after renewal, you’ll need to pay exit fees before switching your coverage over to another insurance company. If you find cheaper insurance alternatives halfway through the year, you may be able to save money even with the cancellation and administrative fees required to terminate your current policy. However, you’ll save time and money if you find a better deal on insurance just before you renew your existing policy.

Whether you choose to stick with the same insurance policy or switch to a new one, don’t get stuck without insurance coverage. Make sure you pay for your policy before your renewal date to avoid financial penalties for late fees and gaps in your coverage.

Don’t let your insurance policy auto-renew this year without carefully considering your coverage options. When it comes to saving money on insurance, timing plays a critical role. An insurance broker can help you compare quotes to find the combination of rates and coverage that best suit your changing needs.

HBFS is bringing you the best coverage and services for your home and car insurance needs with aha insurance. Save up to 50% on home insurance and up to 18% on car insurance when you bundle your policies. Get a bundled quote today and receive 4,000 Hudson’s Bay Rewards points. Get your low home & car insurance rate online in 3 minutes or call us directly at 1 (855) 242-6822.

Bundle and save today with home and car insurance coverage in Ontario, and get started with an online quote or call aha insurance at 1 (855) 242-6822.