In Canada, most car insurance policies are valid for one year before policyholders will need to renew their coverage. This raises the question of whether you can automatically renew your current car insurance policy and whether doing so can benefit you long-term.
To make sure you get the most out of your existing policy, stick around to learn more about renewing car insurance below.
Will my car insurance policy auto-renew?
As we said, expired car insurance renewal dates come up every year. And before your actual expiration date, your current insurer will send you a renewal notice in the mail approximately two months in advance. In this letter, your coverage details will be outlined, and whether or not your car insurance premiums for the year have increased or decreased.
Now, depending on who your insurance coverage is with, some auto insurance companies will allow you to automatically renew your car insurance if you do not contact them when it's time to renew. However, others will require you to renew car insurance on or before your renewal time.
The best thing you can do is speak with your insurance provider about whether automatic renewals are permitted to ensure you do not operate your vehicle without valid coverage in the future.
Where to get a car insurance renewal
When it's your renewal time, there are a couple of different ways you can go about renewing your auto insurance with your insurance provider:
Directly with your insurance company
If you live in a province or territory with private insurance, you'll be able to go directly to your insurance company branch and work with an agent.
Work with a broker
In provinces like British Columbia, where auto insurance is owned by the provincial government, you'll need to go to an ICBC brokerage.
Renew online
A more convenient option for Canadian drivers is to renew your car insurance online. Many providers now allow customers to purchase and renew their coverage options using an online portal.
Over the phone
And, of course, if it's time to renew your auto insurance, you can always give your current provider a call and work with an agent over the phone to get your new coverage.
What documents do I need to renew my car insurance?
When renewing your auto insurance, there are a couple of renewal documents insurance providers will ask you to bring or have handy during your meeting, including the following:
- A valid driver's licence.
- A copy of your auto policy details.
- The renewal letter you received in the mail.
- Anything else the insurance company requests
Beyond these three things, all of your information will be on file with your current insurance provider. If you choose to go with a different provider at your renewal time, you may be asked to provide further information, depending on your driving record and needs.
Types of car insurance you need
As you know, all drivers in Canada require valid insurance to operate their motor vehicle on public roads. When you're up for your renewal, consider purchasing the following types of auto insurance:
Third-party liability insurance
Third-party liability insurance is a mandatory policy that all drivers require. However, depending on the province or territory you live in, the minimum coverage limits will vary. Third-party liability coverage protects policyholders in the event they cause bodily harm or property damage at the time they are operating a motor vehicle.
In the event a third party files a lawsuit against you, this insurance will cover the cost of repairs, replacements, legal fees, medical bills, and other associated costs that arise from the claim, ensuring that your finances and interests are protected.
Accident benefits coverage
Accident benefits coverage is another mandatory insurance policy in Canada, with the exception of a couple of provinces. Should you be in a collision where either you, your passengers, or pedestrians are injured, your accident benefits coverage will cover the costs of medical bills, rehabilitation, caregiver fees, funeral expenses, and more, regardless of who is found at fault for the incident.
Ultimately, accident benefits coverage is a policy meant to ensure that policyholders are able to recover from a car accident without having to worry about impending medical costs.
Uninsured motorist coverage
Uninsured motorist coverage, again, is mandatory for all Canadian motorists. With this type of coverage, you'll be protected and compensated fairly in the event you are involved in a collision with another driver who is either uninsured or underinsured. Uninsured motorist insurance also protects policyholders if they are involved in a hit-and-run, where the other driver flees the scene of the accident before you are able to exchange contact and insurance information.
Collision insurance
Collision car coverage is an optional insurance policy. Should you be in a collision that causes damage to your vehicle, your collision coverage will cover the cost of repairs or the replacement of your vehicle if it is a total loss. Keep in mind that you will need to pay a deductible before your insurance kicks in and pay the rest.
Comprehensive car insurance
Comprehensive car coverage is optional for Canadians. This insurance will cover the cost of repairs if your vehicle is damaged by a non-collision peril. Common insured perils include theft, vandalism, severe weather events, and more.
Similar to collision coverage, comprehensive insurance requires policyholders to pay a deductible amount before their insurance company will pay for the remaining costs.
Accident forgiveness
Accident forgiveness is a one-time optional insurance policy that new drivers and those with clean driving records may want to consider purchasing. Normally, after an at-fault collision, your insurance rates will increase. However, with accident forgiveness, you can avoid a rate increase following your first at-fault accident.
In the meantime, brush up on safe driving tips to ensure you remain safe behind the wheel!
Ways to save on your current car insurance policy
Car insurance rates can change all the time, which is why, at the time you renew your insurance, it's in your best interests to try and save on car insurance as much as possible. To ensure you find the best coverage and price for your insurance needs, try doing the following:
Shop around
One of the best times to shop around for coverage is at the time of your policy renewal date. During this time, we suggest you re-evaluate your insurance and shop around with different providers. This will allow you to compare coverage, consider how your vehicle usage has changed over the year, and potentially save money on your policies.
Ask about discounts
Another great way to save on your insurance rate is to ask about discounts. Most providers offer discounts to those who lower their daily driving distance, have no traffic convictions or speeding tickets on their history, install an anti-theft device on their vehicle, don't have too many claims, and more.
Change your deductible
Remember, the deductible is the amount you pay out of pocket before your provider will pay for the remaining damages at the time you file a claim. By increasing your deductible, you're essentially taking on more responsibility and lessening the amount your provider needs to pay. In return, your insurance will reduce your premium.
Lower your coverage limits
If you feel comfortable doing so, you may want to decrease limits on certain policies to avoid overpaying for coverage you don't necessarily need. Regularly comparing your coverage and evaluating your needs is the best way to determine whether the current limits you have reflect your current circumstances and habits.
Pay for your insurance policy upfront
Another way to save money on your coverage is to pay for your policies upfront. Insurance companies tack on administrative fees to accounts that pay monthly, as they need to process your payments each time, which costs them money. So, by paying for your insurance upfront, you can avoid these fees and save a bit of cash at the end of the day.
Bundle your policies
If you have other insurance policies with your company, consider bundling them. For example, if your home and car insurance renewal are around the same time, you can bundle your coverage and save a bit on your premium. Companies often provide a discount to customers who have more than one policy with them. An added bonus to doing so is that your insurance will be easier to manage moving forward.
Contact BrokerLink for affordable car insurance solutions
BrokerLink is Canada's go-to source for quality insurance at affordable prices. Whether you need to renew your car insurance or are looking to purchase trailer insurance or RV insurance, an experienced broker from our team is always available to help you along the way.
With over 200 locations across Canada, BrokerLink may be in your neighbourhood! Come in and visit us in person to work with a broker one-on-one! If you aren't nearby, feel free to contact us over the phone to speak with one of our insurance experts! You can also get a free, competitive insurance quote right from the comfort of your own home using our online quote tool!
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FAQs about car insurance renewal
Should I let my car insurance auto-renew?
While you can allow your car insurance to renew automatically after you've received your renewal notice, we don't recommend that you do so. In that year, your driving habits may have changed, and it's important that your new car insurance policies reflect your new circumstances. Further, insurance rates change all the time, which could result in a premium increase on your coverage, which isn't ideal for most drivers. Additionally, you could also qualify for safe driving discounts by maintaining a good driving record throughout the year, which you would otherwise not get if you don't speak with your current insurer. By going into your insurance company or working with a broker, you can compare insurance rates, tailor your new car insurance policies to your needs, and ensure that your insurance coverage remains as low as possible without sacrificing the amount of protection you receive.
Is my auto insurance policy still valid on the day it expires?
Yes, your car insurance policy will still be valid on its expiry date up until 11:59 p.m. Therefore, you can realistically continue driving as you normally would and still have coverage for any accidents or other incidents throughout the day. However, as soon as it hits midnight, your car insurance will become invalid, and you will not be covered. Remember, driving without valid insurance is illegal in Canada and can lead to several consequences, which is why it's essential for Canadian drivers to have their auto coverage renewed on their expiry date or earlier.
Do you need to renew your driver's licence when you renew your insurance?
No, renewing your licence does not need to happen at the same time you renew your coverage. Typically, you'll need to renew your driver's licence every five years, while your insurance will need to be renewed each year.
Can I cancel my insurance before its renewal date?
Yes, if, for some reason, you need to cancel your insurance coverage before your renewal date, you can do so by giving your provider a call directly. They may ask you to give a valid reason why you are cancelling your coverage and charge you a cancellation fee.
Why did my insurance rate increase at the time of my renewal?
There are numerous reasons why your rates could have increased at your renewal time. For example, rates increase all the time to account for inflation and other economic factors. At the same time, if your risk tolerance has changed during the year, you'll likely pay more.
If you have any questions, contact one of our local branches.
