How to Renew Your Car Insurance

TL;DR: What you need to know about car insurance renewals

Your car insurance policy renews each year to give both you and your insurer a chance to review the policy and make any necessary changes. When your policy renews: 

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• Your insurer may raise or lower the price of coverage, make changes to the coverage you’re offered, or (in rare cases) cancel your policy‍
• You may raise or lower your deductible, adjust your optional coverage or coverage limits, purchase additional coverage, or switch to a different insurance company, provided you qualify

For residents of British Columbia, Manitoba, Quebec, and Saskatchewan

If your auto insurance coverage is provided in part or in full by a public insurance program, you’ll need to follow your province’s rules for car insurance renewal.

What to do when you receive your renewal notice

When your renewal package arrives, set aside time to sit down and review your auto insurance policy. You may do this on your own or with the help of an insurance advisor. 

You will have the option to either accept your renewal, make changes to your policy, or switch and cancel. If you do nothing, your policy will automatically renew.

Before you decide which action to take, you should: 

1. Review the terms of your updated policy. Compare your coverage, limits, deductibles, discounts, and premiums to your current policy and note any changes. 
2. Consider whether your insurance needs have changed. A new job, new car, or change in driving habits could change the type of insurance coverage you need. You may also want to add perks like roadside assistance to your policy. 
3. Request new car insurance quotes from other insurance providers. Car insurance rates change frequently and vary between providers. Comparing quotes for similar insurance products is the best way to ensure that you’re still paying the best price. If you own your home, take the time to compare bundled auto and home insurance quotes. 

Check to make sure your payment details are still current. If you plan to renew and are currently enrolled in autopay, make sure your credit card or bank account information is up to date.

If you choose to renew

If you’re happy with your renewal terms, you likely don’t need to do anything—most car insurance policies renew automatically. The only time it wouldn’t is if you call to cancel, miss a payment, or no longer qualify for coverage (for example, due to tickets, accidents, or misrepresentation).

If you want to make changes

If you’re satisfied that you’re getting the best price from your current insurer but want to adjust your coverage options, deductibles, or other policy details, contact your insurance company and request the change(s) before your renewal date.

If you want to cancel

We can help you shop around with other insurance companies to find the right coverage at the best price. Make sure that you’ve made the first payment and activated coverage on your new policy before cancellation.

Why your car insurance may have increased at renewal

It’s common to see your auto insurance premium increase at renewal. There are four main factors that typically cause this change: your personal insurance record, where you live, the vehicle you drive, and inflation. 

In recent years, however, some Canadians have seen more significant rate increases due to the combined effects of the COVID-19 pandemic, an increase in extreme weather events, global conflict and tariff pressures, regulatory shifts, and new vehicle trends. 

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• COVID-19: Although the COVID-19 pandemic peaked half a decade ago, the insurance industry responded slowly to the economic havoc it wreaked. Lingering supply chain issues and inflationary pressures may still cause insurers to raise rates. 
• Extreme weather: According to the Insurance Bureau of Canada (IBC), severe weather triggered property insurance claims worth over $2.4 billion across the nation in 2025. Insurers may raise rates to account for the rising toll of climate change. 
• Global conflict and tariffs: Tariffs imposed by the U.S. government on Canadian steel and aluminum, along with Canadian counter-tariffs, are contributing to rate increases across the country. 
• Regulatory shifts: Provincial governments regulate the insurance industry by approving or rejecting rate increases. In some cases, strict regulation may force some insurers out of the market in a given province, leading those that remain to raise their prices. 
• Vehicle trends: Newer vehicles rely increasingly on high-tech systems for safety, security, and semi-autonomous driving, which raises the cost of repairs and property damage claims. Electric vehicles also carry higher repair costs. 

What happens if you don’t renew your car insurance?

If you don’t renew your car insurance before the expiry date, one of two things may happen: 

• Your policy could renew automatically: If you’re enrolled in automatic payments through your bank account or credit card, you may be charged for the next policy term unless you take action to change or cancel the policy. ‍
• Your policy could expire: If you aren’t enrolled in automatic payments and don’t make a payment to keep your coverage active, it will expire on or after your renewal date.

What happens if your insurance policy expires?

If your car insurance policy expires without new coverage in place, you’ll be unable to drive legally and could face steep fines, suspension of your driver’s license, and other legal penalties. In Ontario, fines for driving without insurance can be as high as $50,000.

You’ll also have difficulty finding affordable insurance in the future with a policy lapse on your driving record.

Can you switch car insurance before renewal?

Yes, you can switch car insurance companies before your policy renews.

Before switching car insurance, check your policy documents for the insurer’s policy regarding cancellation. Many insurers will charge what’s known as a “short-rate cancellation fee” if you end your coverage before the renewal period. 

Contact your insurer to confirm any fees you may be charged for canceling early and compare them to the savings you could get by switching.

FAQ: Car insurance renewal

This article is for general information only and is not insurance or legal advice. Examples and any sample quotes or rate ranges are illustrative and do not constitute an offer or guarantee of coverage, price, or eligibility. Actual coverage, discounts, and premiums depend on your individual circumstances and the insurer provider; if there is any discrepancy, your policy and insurer documentation govern. For advice about your situation, speak with one of our licensed insurance professionals.