Most auto insurance policies include an automatic renewal within their terms, which can be great for anyone that does not want to handle paperwork or have to search for a new policy. Still, it also means that your rates may increase without you noticing. Roughly one month before your policy expires, you’ll receive a letter from your insurance company to discuss the renewal. It will include your new car insurance premium, a revised declaration page, and new insurance cards for your vehicle. If you ignore the letter and continue to make payments, your policy will automatically renew at the new premium rate on your renewal date.
While there is no guarantee it will happen, your rates may increase at renewal. Insurance rates are calculated based on a multitude of factors, including your age, type of vehicle, and driving history. If you have filed any insurance claims or had a claim against you, been involved in an at-fault accident, received a driving ticket, or moved to a new zip code, then your auto insurance rates may increase. Additionally, if the market has changed in your area, like an increase in vehicle accidents or hail damage claims, that may lead to a change in your premium.
If you decide to cancel your auto insurance policy, you’ll likely have the option to do it over the phone, or you may be required to send a letter to the provider stating your intention to cancel. If you decide to switch insurance providers, you’ll need to do so before your current policy expiring to avoid potential repercussions. At Commercial One Insurance Service in Burlingame, CA we can assist in shopping for auto insurance rates within your budget. Give us a call today to learn more.