Renewing your car insurance is usually an easy process, but it can get complicated if you need to amend your coverage or change auto insurance companies.

We’ll cover everything you need to know to renew your existing car insurance policy, plus how to shop around for new car insurance or switch insurance providers to make sure you get the best car insurance coverage.

How does car insurance renewal work?

Most insurance providers have policy periods that span six or 12 months. When the policy period is approaching the last month, the insurance company will usually send advanced notice of your renewal alongside any changes to your car insurance premium or other adjusted terms.

You’ll have time to look over the coverage details, note any changes to the cost of your premium, and decide whether to continue with your current car insurance company or shop around for new car insurance.

Most insurance companies offer an automatic renewal process, so all you have to do is continue to pay your premiums in order to maintain continuous coverage. If you’ve set up automatic payments, you won’t even need to dip into your wallet except to pocket your updated car insurance ID cards.

What happens if you don't renew your auto insurance?

Because most car insurance companies do auto-renewal, you may still be covered by your previous policy even if you didn’t intentionally renew it. However, if your current insurance company doesn’t have automatic renewals, cancels your auto policy, or you forget to pay your premium, you could be looking at a lapse in coverage.

A lapse in auto insurance coverage can have serious consequences, including driver’s license suspension, expensive fines, and even jail time. Not only does it mean you might not be covered in the event of an accident, but it could also affect your credit-based insurance score, result in higher premiums, and make it harder to change car insurance companies in the future.

The good news is short lapses in car insurance coverage are fairly common, and most states have a grace period of anywhere from 10-20 days for failure to pay premiums. If you forget to renew and your policy expires, call your insurance agent as soon as possible to get coverage reinstated.

When to consider not renewing your existing policy

When you get a renewal notice, it’s a good time to shop quotes online for car insurance and make sure your insurance cost is still reasonable. In fact, the Insurance Information Institute recommends getting at least three car insurance quotes from other auto insurers. While you can always switch companies at any time, it’s a little easier to change car insurance during the renewal period so you can avoid a cancellation fee.

Here are a few reasons you might want to consider speaking to a licensed insurance professional about switching insurance companies:

You’d like reduced premiums. Everyone wants to save money on car insurance. Insurance carriers may offer incentives to switch.

Your auto insurer doesn’t offer the coverage you need. It makes financial sense to explore changing insurance carriers so you can bundle policies to earn discounts.

You’re disappointed with your insurance company. Not all auto insurers are created equal. Whether it’s issues with customer service, rate increases, or coverage limits, speak with a licensed insurance agent about finding new coverage elsewhere.

What to do if your current insurer cancels or doesn’t renew your policy

It’s true: Your auto insurer can either refuse to renew or outright cancel your car insurance for a variety of reasons. Here are the most common:

• Changes to your driving record or license suspension

• A history of late payments

• Insurance fraud

• Frequent car insurance claims

• Changes to your driving history

It’s also possible your insurance company stops offering coverage in your area or no longer provides coverage for specific types of motor vehicles.

Cancellation vs. non-renewal

There are differences between an insurance company deciding to cancel or simply opting not to renew your policy, though in both cases, you’ll need to move on from your previous insurer and come up with a new car insurance plan.

Insurance companies are not allowed to cancel a policy if it’s been in effect for more than 60 days except for serious infractions such as insurance fraud, driving suspension, or failure to pay. If this does happen to you, you’d need to find a new auto insurer immediately, usually the same day, in order to avoid a lapse in coverage.

With non-renewals, most companies provide advanced notice and a reason they are opting not to renew your car insurance. As with cancellations, you can usually speak with your insurance carrier to appeal the decision, and they may reinstate your policy, albeit with higher premiums.

Renewing your car insurance after your policy expires

If your policy has already expired, you may still be able to renew insurance coverage through your existing company. There are grace periods if you forget to renew your current policy or miss a payment, but they vary by state and insurance company.

Although the insurance company may be willing to reinstate your policy for a short period of time after the expiration, your insurance record may still reflect a lapse in coverage. You can also seek out a new car insurance carrier if your existing provider is reluctant to revive your lapsed policy, although you may have to pay a higher insurance price to secure coverage.

Step-by-step guide to switching car insurance companies before your renewal date

Here’s how to get new insurance in place before your renewal date and avoid a dreaded lapse in coverage.

Step 1: Determine when your current insurance policy period ends

As previously stated, most car insurance companies issue policies in either six-month or 12-month intervals. You’ll usually be notified of the upcoming policy renewal and offered a chance to accept or reject the coverage before the new policy term starts.

Keep an eye out for an increase in your car insurance rates, especially if you’ve just bought a brand new car, recently had an at-fault car accident, added a teen driver, or are adjusting types of coverage or coverage limits.

Step 2: Check for better auto insurance rates

While switching insurers can earn you a better rate, it isn’t the only way to reduce your insurance premiums. A 2024 report found that nearly a quarter of policyholders said the prior year’s higher car insurance premiums forced them to choose less coverage.

Just be warned that if you have a car loan or are leasing your car, your lender may require full coverage. In addition to exploring coverage options, you can also opt to raise your deductible or speak with a licensed insurance agent to make sure you’re taking advantage of all the discounts your insurer offers.

Step 3: Decide if you'll decline or renew your existing car insurance coverage

If you’ve decided to stick with your current insurer, notify them before your policy expires. If you have automatic renewal, you can simply pay your premium on time, and your coverage should roll over into the next policy period.

However, if you’re choosing not to continue coverage with the same company, you’ll want to secure another insurance carrier and then contact your old one before the renewal date. Otherwise, especially with automatic payments, you could end up paying cancellation fees if your old car insurance policy has already been renewed.

Step 4: Secure new car insurance coverage before your existing policy expires

This step is critical to avoiding a lapse. Never cancel your auto insurance policy or give notice you won’t be renewing until you’ve secured other coverage. Make sure you have policy documents in hand and have paid the premium on your new coverage before the expiration date of your old auto insurance policy.

One trick to switching car insurance companies is to have your new auto policy start a few days before the old one is set to expire. That way you can provide notice of non-renewal, avoid cancellation fees, and still maintain continuous coverage.

Step 5: Cancel or decline coverage through your previous provider

Once you’ve secured a new policy, you’ll have to tell the old insurance carrier you’re giving them the boot. This doesn’t have to be a hassle or a hard conversation, however. Usually there’s an option to cancel or notify of non-renewal on the insurance company’s website.

Keep in mind that if you have a car loan or are leasing, you may also have to update your insurance information with the lender who financed your used or new car.