Renewing your car insurance before renewal time
Maybe it’s nearly time to renew your car insurance in Quebec, and you’re thinking – hey, this is something I do every year. Why not just get the jump on it, tick it off my list, and be done with it? Can you renew your car insurance early? It’s one of those frequently asked questions among car owners that never truly gets answered. In this article, Panda7 plans to dig into car insurance renewals, how you can renew your car insurance, where to do it, and whether you can renew your car insurance before renewal time or not. If you have specific questions privy to your personal circumstances, don’t hesitate to give us a call and discuss with one of our friendly auto brokers.
How do you renew your car insurance?
Car insurance technically renews automatically. Most car insurance policies and car insurance providers will automatically renew you for another 12-month policy once your current policy term draws to a close. In most scenarios, your insurance provider will begin the process of working on your renewal about as far back as 90 days before your expiry date. During this period, they will check your existing provincial driving record to determine if you have received any driving convictions or made any claims following your last renewal. If this is the case, they may remove a credit for being loss-free. If you have not made any claims or received any convictions, and this is your third (or fourth, or fifth – depending on the insurance provider) year being clean, they may add on a loss-free credit, which will result in your insurance rates being lowered. They may update your rates as well if you have added on a younger driver to your policy or if you have had your twenty fifth birthday in the last year. They will ensure, during this time, that your rate reflects your unique situation, and will then compile it for review by your friendly insurance broker so it is prepared for renewal time.
You may receive your policy renewal documents between 45-60 days prior to your renewal date. If you are currently working with a broker, your broker will receive these updated document copies. A responsible broker may contact you to discuss any potential changes made, such as if there are new drivers, new vehicles, or new circumstances that may impact your coverage or rates.
If your insurance company uses a digital format, you may be directed to a virtual portal to review your insurance information prior to renewal. This gives you time to ensure everything is correct before the existing policy expires.
When do I need to inform my provider of any changes?
You can technically phone up your broker or provider whenever to inform them of any changes to your situation that may result in you needing to update your policy. All you need to do to update your policy is to call your provider and discuss any of the following common changes:
- A new address
- New drivers added to your policy
- Drivers removed from your policy
- If you started working from home
- If you stopped working remotely and now commute to an office
- A new vehicle or vehicle(s) added to your policy
It’s in your best interests that your policy always reflects your current circumstances, so be sure to call your provider or broker if your situation has changed at all.
Can I renew my car insurance for only 6 months?
A standard policy period is typically 12 months. If you need a 6-month policy, some providers will be able to modify your current policy to meet your needs more accurately. There are only a few providers who offer 6-month policies, which are increasingly more and more rare throughout Quebec. Discuss with Panda7’s brokers if you need help shopping around for a 6-month policy provider. If your current company does not sell 6-month policies, you’ll need to cancel your current policy and change companies – potentially losing some of your existing credits.
If the reason for the 6-month policy is that you store your vehicle during certain months of the year, you can reduce your rates by removing some coverages during the time that the vehicle is in storage (i.e., collision and accident benefits coverages.) You may also increase your deductible for things like your comprehensive coverage, as the chances of theft are far lower.
Remember – you can cancel your policy at any time! If you are in the process of selling your vehicle, you don’t need to choose a 6-month policy – you can simply cancel at the time you sell. Some companies will apply penalties for cancelling early, but you may be able to avoid the penalty under specific circumstances.
So, can you renew your car insurance early?
No, typically not. While this may seem like an easy way to tick something off the list, note that reviewing your insurance doesn’t take all that much time and your policy will renew automatically anyway unless there has been a significant change in risk and your insurance company is no longer willing to insure you. You can, however, change your levels of coverage or cancel your policy at any point. It’s highly recommended that you avoid canceling your policy without first having a new one in place as having a lapse in coverage can significantly raise your rates when you do decide to get insured again.
Insurance companies won’t offer the chance to renew a policy ahead of their own schedule because they work through the details of your renewal prior to the expiry date and may not be able to speed up that process. This process allows them to take the opportunity to review your risk factors and adjust rates accordingly – possibly even in your favour! During this time, they may also review your eligibility for available discounts, which can promote loyalty and help you pay less.
