Renew your car insurance before the renewal time
It might be time to renew your car insurance in Quebec, and you're thinking, "This is something I do every year. Why not just get ahead of it, check it off my list, and be done with it?" Can you renew your car insurance early? This is one of those frequently asked questions among car owners that never really gets answered. In this article, Panda7 plans to delve into car insurance renewals: how you can renew your car insurance, where to do it, and whether or not you can renew your car insurance before the renewal time. If you have specific questions related to your personal situation, feel free to call us and speak with one of our friendly car brokers.
How to renew your car insurance
Car insurance renews automatically. Most car insurance policies and providers will automatically renew your policy for another 12 months once your current policy term is nearing its end. In most cases, your insurer will begin working on your renewal approximately 90 days before your expiry date. During this time, they will review your existing provincial driving record to determine if you have received any driving convictions or made any claims since your last renewal. If so, they may deduct a no-loss credit. If you have not made any claims or received any convictions, and this is your third (or fourth, or fifth – depending on the provider) clean driving record year, they may add a no-loss credit, which will result in a reduction in your insurance rates. They may also update your rates if you have added a younger driver to your policy or if you turned 25 in the past year. Meanwhile, they will ensure your rate reflects your unique circumstances, then compile it for review by your friendly insurance broker so it is ready for renewal.
You can expect to receive your policy renewal documents between 45 and 60 days before your renewal date. If you currently work with a broker, your broker will receive these updated copies of the documents. A responsible broker may contact you to discuss any changes, such as new drivers, new vehicles, or new circumstances that could affect 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 before renewal. This gives you time to ensure everything is correct before your existing policy expires.
When should I inform my supplier of changes?
You can technically call your broker or provider whenever you want to inform them of any changes to your situation that might require you to update your policy. All you need to do to update your policy is call your provider and discuss one of the following common changes:
- A new address
- New drivers added to your policy
- Drivers removed from your policy
- If you have started working from home
- If you have stopped working remotely and are now going to an office
- A new vehicle added to your policy
It is in your best interest that your policy always reflects your current situation, so be sure to call your provider or broker if your situation has changed.
Can I renew my car insurance for only 6 months?
A standard insurance period is usually 12 months. If you need a 6-month policy, some providers may be able to modify your current policy to better suit your needs. There are only a few providers offering 6-month policies, and they are becoming increasingly rare throughout Quebec. Speak with Panda7 brokers if you need help finding a 6-month policy provider. If your current company doesn't sell 6-month policies, you will have to cancel your current policy and switch providers, which could result in the loss of some of your existing credit.
If the reason for the six-month policy is that you store your vehicle for certain months of the year, you can lower your rates by removing some coverages while the vehicle is in storage (i.e., collision and accident benefits). You can also increase your deductible for things like comprehensive coverage, since the risk of theft is much lower.
Remember that you can cancel your policy at any time! If you're selling your vehicle, you don't need to choose a 6-month policy – you can simply cancel it at the time of sale. Some companies will apply penalties for early cancellation, but you may be able to avoid the penalty in specific circumstances.
So, can you renew your car insurance earlier?
No, generally no. While it might seem like an easy way to tick something off the list, please note that reviewing your insurance doesn't take much time and your policy will be automatically renewed 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 level of coverage or cancel your policy at any time. It is strongly recommended that you avoid canceling your policy without having a new one in place, as having expired coverage can significantly increase your rates when you decide to insure again.
Insurance companies won't offer the chance to renew a policy ahead of schedule because they review your renewal details before the expiry date and may not be able to expedite the process. This process allows them to assess your risk factors and adjust rates accordingly, perhaps even in your favor! During this time, they can also review your eligibility for available discounts, which can encourage loyalty and help you pay less.