How to renew your car insurance in 2024

There’s really nothing complicated about renewing your auto insurance policy. In fact, many drivers never even need to give it a thought.

“Auto policies, whether they are six-month or 12-month terms, typically automatically renew unless the insurer decides not to renew your coverage,” says Mark Friedlander, the director of communications at the Insurance Information Institute (Triple-I), an industry trade group. “Auto-renewal enables the policyholder to be continually covered without a break in coverage.”

Your insurer will send you a renewal notice by mail or email a few weeks before your policy’s expiration date that will list any policy or premium adjustments. You should review those changes carefully. Some insurers, such as Esurance, will ask you to go online to verify that your policy information is current and correct. 

Simply pay the bill if you want to continue the policy with the same coverage. The process is even simpler if you have autopay; just let the payment go through as scheduled. 

Key highlights

• Car insurance policy terms typically last for six or 12 months and will renew automatically.
• Insurers must notify you several weeks in advance that your policy will expire and is up for renewal.
• Before renewing your current policy, it’s a good idea to compare car insurance rates with at least three other carriers. You could find a better deal.

What to do when your auto insurance policy comes up for renewal

The first thing to do when you receive your policy renewal notice is to look at the rate you will be charged. Is it the same as what you’re paying currently, or will your premium increase (and if so, by how much)? If the rate is too high, take action.

Begin by talking to your insurer directly and seeing if they can lower your rate. There may be discounts you’re eligible for yet haven’t taken advantage of. You may also want to raise your deductible, which can lead to a lower rate as well. Changing your coverage amounts or options – for example, dropping full car insurance on an older vehicle – is also worth exploring.

If, for some reason, your car insurance policy doesn’t automatically renew, your insurance company will send a notification about the deadline to renew. In most cases, your insurance company will consider your premium payment a notification of renewal, though some might require a phone call or some formal documentation.

But if none of those options results in a rate you can afford, it’s time to consider switching car insurance.

Switching car insurance during renewal

When you get a notice that your insurance is up for renewal, take a good look at any policy changes. There’s a good chance your insurer bumped up your premium. Car insurance rates rose by 14% during the 12-month period ending October 2024, according to the U.S. Bureau of Labor Statistics.

The renewal period is a smart time to shop around for better coverage. Remember, consumers can switch car insurance anytime.

“An auto-renewal does not prevent a policyholder from shopping their coverage with other insurers,” Friedlander says.

Here are some of the steps you should take when thinking about switching insurers:

• Ask your current provider how to lower your rate. You may be entitled to discounts you weren’t aware of.
• Shop around. See what other carriers might offer. You can start with any of the car insurance comparison tools available on the web. Experts say you should get at least three quotes before making a decision.
• Make sure you're comparing similar coverages. You want to check that the liability level is the same – the level is expressed with numbers, such as 25/50/25, which means coverage of $25,000 for bodily injury per person, $50,000 for bodily injury per incident and $25,000 for property damage per incident. And if you have collision and comprehensive, and want to continue that coverage, make sure your quotes include them. Collision covers damage to your car from a crash with another vehicle or an object. Comprehensive insurance covers vehicle damage from vandalism, theft or environmental hazards, such as hail. Of course, make sure the deductibles and discounts are the same. And check any additional coverage as well, like roadside assistance

How to shop for new car insurance

As mentioned above, if you’re looking for a new insurance carrier you should do some comparison shopping – getting quotes from at least three different auto insurers. Be sure to ask about different coverages and coverage levels, discounts, and other factors that may affect how much you pay for car insurance.

It’s also important to consider a company’s reputation for customer service, its complaints record and its financial stability. Consumers can get visibility into insurance companies they may be considering from respected third-party data – such as J.D. Power’s annual U.S. Auto Claims Satisfaction Study, the National Association of Insurance Commissioners (NAIC) Complaint Index, and AM Best credit ratings.

Should you adjust your insurance coverage at renewal?

The renewal period is a good time to think about how much coverage you need. For example, if you drive an older vehicle that is paid off, you may find that you're paying more for full coverage than your automobile is worth. In that case, you might want to consider dropping collision and comprehensive insurance and going only with liability coverage. 

If you need to save money, you could reduce your coverage to your state’s minimum. Each state has different requirements, but most require a certain amount of liability insurance, called the state minimum, commonly 25/50/25. This will cover bodily injury and property damage you cause to others in an accident but not provide coverage for your own losses. What's more, the state-mandated minimum amount of insurance is unlikely to be sufficient if you're in a major at-fault accident. Experts recommend carrying liability coverage with limits of 100/300/100/

If you don't want to drop full coverage, you can also save money by adjusting your deductibles, say from $500 to $1,000. The only drawback is that a higher deductible means you will have to pay more out of pocket if you file a claim.

When should you not renew a policy?

As long as you own a car and plan to drive, car insurance is required in almost every state. You need to either renew your policy or seek coverage elsewhere. If you sign up with another insurance company, make sure you have continuous insurance coverage during the transition. If you allow your coverage to lapse, even for a brief amount of time, you run the risk of being cited for driving without insurance, which could lead to legal penalties and fees. A lapse in coverage can also make it more difficult to find new insurance.

How to cancel a policy

To cancel your car insurance policy, contact your insurer. Be sure to have new insurance lined up before canceling your old policy. Otherwise, you could find yourself briefly without coverage, which could cause problems if you're pulled over while driving or trying to buy new car insurance.

Depending on your state requirements, you may need to notify your current insurance company in advance if you want to cancel your policy or do so in writing. Talk to your local agent or carrier representative for details on how to cancel your policy.

“[M]ost auto policies can be canceled by the customer during the coverage period without penalty if they want to find alternate coverage,” Friedlander says.

What happens if your auto insurance company doesn’t renew your policy?

An insurance company may decide to drop you, a process known as non-renewal, which happens when your policy is about to expire. Insurance companies must have a reason to non-renew a policy; the acceptable reasons are set out in state law.

An insurer may drop you if they think you’re a heightened risk, such as after a drunk driving conviction. On the other hand, an insurance company may decide to get out of the auto insurance business or cut back the number of customers it covers in a given location – in other words, something beyond your control. In either case, the insurer has to tell you why it made its decision not to renew your policy.

You can call the insurer if you think the reason is unfair or want a further explanation. If you don’t find their answer reasonable, you can call your state insurance department. If you get a non-renewal notice, you should immediately start shopping for a new insurance company. Again, you don’t want to be without coverage.

Frequently asked questions

Is it possible to renew my car insurance after expiration?

That depends in part on your insurance company’s procedures and how long it’s been since your policy expired. If it’s a short period of time, the process may be as easy as getting in touch with your insurer and paying your premium. However, in some cases, you may need to apply for a new policy. 

How can I decline a car insurance renewal?

If you plan to decline your car insurance renewal, it’s important to have a new policy lined up beforehand. In most states, you can’t drive during a gap between insurance policies, and a gap in insurance may also cause your state to revoke your car’s registration. Once you know the date when your new policy takes effect, notify your insurer that you will not renew. As mentioned earlier, make sure there are no gaps in coverage.

Under what circumstances can an insurer not renew my policy?

A car insurance company can decline to renew a policy for reasons such as the policyholder misrepresenting risk factors (like being dishonest on an application) or the policyholder becoming a bigger risk over time (like driving recklessly or making a lot of claims).

It may also simply be a business decision, such as the insurance company discontinuing its policies in a certain state or choosing not to offer a certain type of policy. In other words, it may or may not be the fault of the policyholder.

What's the difference between car insurance cancellation and non-renewal?

Cancellation occurs in the middle of the policy term and can only happen for a few reasons, including fraud and non-payment of premiums.

Non-renewal happens at the renewal date and is essentially the insurance company deciding not to renew the policy. The reasons for a non-renewal can be more broad than with a cancellation and generally involve increased risk.

Can I drive without insurance?

Though auto insurance is regulated on a state-by-state basis, nearly every state requires drivers to have insurance to operate a vehicle legally. The penalties for driving without insurance can range from fines to jail time, and insurers may reclassify you as a high-risk driver, which can make it difficult to find affordable coverage.