To do list before your auto policy renews this year

Written by

Edited by

Mariah Posey

Published on February 03, 2025 | 4 min read

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The top of the year is the time to set goals, get organized and get your ducks in a row for the coming year — especially when it comes to your money. A financial checklist can help you stay on task, and an oft-neglected item on that list is reviewing your car insurance policy. Most policies renew automatically, but that doesn’t mean you should be passive about your coverage. Bankrate’s insurance editorial team is here to walk you through some simple steps to help make sure you’re getting what you need from your auto policy without breaking your budget in 2025.

1. Find your renewal date

Most car insurance policies renew every six months, but not everyone’s policy is on the same cycle. Your policy’s effective date probably isn’t the first of the new year; it’s likely sometime later in the year, or even in the middle of a month. You can find your policy’s renewal date on your declarations page, but you can always ask your insurance company to give you the date if you misplaced it. Once you have it, it’s a good idea to set a calendar reminder on your smartphone so you don’t forget.

How do car insurance renewals work?

If your car insurance provider wants to keep you on, you’ll receive a renewal offer a few weeks before your policy is set to expire. The offer will detail your coverage limits, new rate (if it’s changing) and other important policy information. Most car insurance policies renew automatically, so if you want to stay with your current car insurance company, you likely won’t have to take much action — just make sure your preferred payment method works. Or if you’re hit with a steep rate increase, you can deny the renewal offer to look for a cheaper policy.

Why are car insurance renewals important?

Knowing your renewal date can help you avoid a coverage lapse, which can drive up the cost of your coverage later on, similar to a speeding ticket or at-fault accident. In most states, your insurance company must give you at least 10 days’ notice if it plans to drop you. It sounds like a tight timeline, but buying a new policy is usually a speedy process. As long as you know when your old policy will expire, you can set your new policy to take effect the same day so that your coverage doesn’t lapse.

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2. Read the letter from your car insurance company

If your car insurance company is raising your rate, it will tell you why. Maybe you got a recent speeding ticket or added a teen driver to your policy. Or, the pricier rate could have nothing to do with you as a driver. Perhaps vehicle theft is on the rise in your ZIP code, or your company is raising rates across the board. Whichever notice you receive from your car insurer, whether it’s a nonrenewal notice, cancellation notice or renewal offer, be sure to read it carefully to inform your next steps.

Nonrenewal vs. cancellation: What's the difference?

A nonrenewal occurs when the policy expires, while a cancellation can happen at any point throughout the policy’s term. If your policy has been in force for more than 60 days, your insurance company can only cancel your policy because of a missed payment, suspended license, revoked license or insurance fraud.

3. Shop around

You don’t need to wait until your policy renews or until the beginning of a new year to think about finding a better rate elsewhere. You can switch companies at any time, so long as you let your previous provider know and make sure you don’t create a coverage lapse. Collecting and comparing quotes can help you get a better sense of whether the grass will be greener with a different car insurance company, cost-wise.

4. Check your coverage limits and add-ons

Your coverage needs can change from the time you buy your car insurance policy to the time it renews. Factors like changing state minimum requirements, how old your vehicle is and how much you drive can all play a part in how much coverage you need. When looking at your policy, consider the following:

Liability limits: Effective January 1, 2025, California, Utah and Virginia are raising state minimum coverage requirements, which could make your premium slightly more expensive.
Deductible: Double-check your deductible to ensure it stays at an amount you can reasonably afford.
Car value: If you have an older car, it might cost more to insure at full coverage than it’s worth.
Gap insurance: If you’ve paid off your car loan, or are close to doing so, you may not need to keep paying for gap insurance.
Roadside assistance: If roadside assistance is too expensive from your car insurance provider, you can get it elsewhere. Many credit cards offer roadside assistance, or you can get it with AAA membership. Or, if you bought a new car, part of your warranty package could include some level of roadside assistance.

5. See how many drivers on your policy

Parents of teens may want to be especially mindful of this. Sometimes, your car insurance company will automatically add a teen to your policy once they’re old enough to drive. If your company is raising your premium significantly upon renewal, this could be the culprit. Carefully read your policy paperwork to make sure the number of drivers listed on the policy is accurate.

6. Check your claims and accident records

Your driving record can play a substantial role in determining your policy costs, as can prior claims. Before your policy renews, you can request these documents for any outstanding issues:

Letter of experience: You can request this from your insurance claims department to show claims history up to five years back.
Driving abstracts: This form is available from your state’s Department of Motor Vehicles (or equivalent organization) and lists accidents and tickets up to five years back.

If any of the information on these forms is not accurate, you contact either your insurance company or the Department of Motor Vehicles to get it corrected.

7. Speak with a licensed agent

Understanding the finer points of your car insurance policy can be challenging. But, you don’t have to do it entirely on your own. A licensed agent can help walk you through how high (or low) your limits should be, identify gaps in your coverage and even help you identify discounts you may have missed out on the first time you applied for your policy.