Renewal insurance is a recurring event in which the insurance company sends a renewal offer, often using slightly different terms. Now is a good time to review your policy. Given how tedious this process can sometimes be, we’ve prepared a quick guide to guide you through the process.
When will my insurance be renewed?
By default, your policy renewal occurs just before your current policy expires. Depending on the type of policy and how long it is valid, it usually happens every 6 or 12 months. The busiest months for car renewals are April and October each year. Approximately 4 weeks before the current policy expires, the current insurance company sends a renewal document. These documents are the company’s next offer. During the renewal period, insurers often revise premiums to increase or decrease them.
Why does the premium rate go up?
Sometimes insurance companies send renewals that are no longer as attractive as they used to be. Premium increases can be caused by a variety of factors. Some of them are beyond our control. Other things we can stop.
One of the main reasons insurance premiums go up is usually inflation. The more we earn, the lower the value of the dollar, and therefore the prices of services go up.
Another reason for premium increases can be our age. After a certain age, premiums tend to go up. As our reflexes slow down, our vision deteriorates. Our minds become less clear, and as a result, more money leaks out of our pockets to insure our vehicles. However, there are things you can do to ensure that you still get the best insurance as an elderly person.
Area of residence is an important factor in calculating premiums.
Premium calculations strictly follow a detailed algorithm that considers several options. If the number of cars in your zip code has increased in the last semester, if there have been more insurance claims than usual in your area, or if there have been natural disasters such as storms, your premiums would actually increase.
Ironically, if you live in a state where an earthquake is likely, the longer an earthquake does not occur, the more compensation you will pay for the earthquake. Because when structural tensions build up, earthquakes are more likely to happen after a long peace.
On the other hand, we have a premium increase factor that is potentially avoidable. Every time you renew, the insurance company reviews your coverage. If there is a new claim, accident or traffic violation in the last 6 or 12 months, the premium will increase depending on the period. The increase will depend on how serious the incident is. To avoid an unwanted premium increase, it is best to keep your record safe and responsible on the road.
What should I do when renewal time comes around?
When renewal time comes, it’s always best to take a step back and review your policy.
Even if you think we have great proportions at this point, you may be surprised to find yourself there. Many insurance companies offer loyalty programs that give you certain benefits if you stay with the company long term. They are often attractive, allowing you to get a lower percentage over time. Sometimes accident forgiveness is provided, which prevents premiums from going up if you make any mistakes on the road.
While these rewards are attractive, they can sometimes be a barrier to staying with a company that offers you a less-than-beneficial offer. Brand loyalty can be a nice bonus for you. It shouldn’t be the only reason you stay with an insurance company.
How can I get a good offer?
The most important part of getting good insurance is making sure that the offer offered to you is the best you can get. Searching for policies takes a lot of time. The decision to manually enter the same information over and over again to get a quote from another company can be quite a tedious and repetitive job.
Fortunately, Gaby’s insurance doesn’t have to be like that! Our system allows you to check dozens of different insurers at once. Gaby clearly lays out your findings so you can compare and easily make informed decisions.