Is my Auto Insurance Company Obligated to Renew My Coverage

A number of consumers may be wondering whether their auto insurance company is obligated to renew their coverage when the term of insurance expires. The company is under no obligation to renew coverage at the end of the policy term.

In many cases, the company does offer to continue to provide coverage for another term. You can either accept the terms insurance company is offering or look for coverage elsewhere.

Auto Insurance Rates at Policy Renewal

Your auto insurance company may raise your rates when your policy is up for renewal. You may be charged more for your coverage even if your insurance profile has stayed the same from year to year. The rate increase reflects the higher cost of doing business and paying out on claims made by other drivers.

If, however, you have been involved in an accident, been charged with a DUI or DWI offense, or accumulated moving violations on your driving record, you can expect that the rates you are being charged by your auto insurance company will increase.Some companies to offer accident forgiveness to their policyholders. The company will not increase rates after a first at-fault accident. Before you agree to this type of provision, you should consider how much it will add to the cost of coverage.

Shop Around for Auto Insurance Coverage

Unless you make a point of comparing prices from different providers before you agree to renew your coverage from the same provider, you won’t know whether you are getting the best price for the type and level of protection you need. A good strategy is to make a note on your calendar couple of months before your current auto insurance coverage is up for renewal.

This will give you the time you need to review your existing coverage to see whether you are adequately covered or if you need to make some changes to your policy. A basic, no-frills policy will cost less than one which includes extras, such as coverage which pays for a rental car while yours is being repaired following an accident.

Once you have a clear idea about what you are looking for in an auto insurance policy, start getting quotes for this precise type and level of protection. Going online is a quick and effective way to gather the information you need to make an informed decision about your coverage.

You have the choice of visiting individual auto insurance company web sites to request pricing information, or you can get what you need quickly and conveniently from a site which offers quotes from several providers. The latter method is the quickest and most efficient way to compare rates and since you have already done your homework to determine what you are looking for, this choice will help to make your buying decision much easier.

If you choose to change auto insurance companies, buy the new policy before you cancel your existing coverage to avoid any lapse in protection.