Does Car Insurance Automatically Renew?
Does my car insurance automatically renew? Or do I need to call my car insurance provider to renew it?
Drivers in provinces with government-run insurance providers, such as the Insurance Corporation of British Columbia (ICBC), may wonder how their renewal process works compared to private insurers.
Let’s take a look at car insurance renewals in Canada, focusing on automatic renewals and how they vary between private and government insurers.
What is car insurance renewal?
Car insurance renewal is the process by which your existing policy is extended for another term, usually six months or one year, depending on the provider and plan. The renewal ensures continuous coverage, which is mandatory in Canada.
Failing to renew your car insurance on time can leave you uninsured, potentially resulting in fines, license suspension, or difficulties in obtaining future coverage.
Does car insurance automatically renew?
For most Canadians, the renewal process depends on the type of insurance provider—whether it’s a private company or a government-run insurer—and the specific terms of your policy.
Private insurance companies
Many private insurance companies in Canada offer automatic renewal for car insurance policies. If your insurer provides this feature, your policy will renew at the end of the term without any action required from you. Here’s how it typically works:
- Notification period: Before the renewal date, insurers send out a renewal notice, usually 30 to 60 days in advance. This notice outlines the updated premium, policy details, and any changes to terms or coverage.
- Automatic billing: If you’re enrolled in automatic payments, the premium for your renewed policy will be charged to your account on the due date. This eliminates the need to have it done manually, ensuring continuous coverage.
Automatic renewal is not always universal. Some policies require manual renewal, particularly if:
- There are changes in your driving history, such as accidents or tickets.
- You’ve missed payments or have an outstanding balance.
- You opted out of automatic renewal when setting up your policy.
Government-run insurance providers
In provinces with government-run insurance, such as ICBC in British Columbia, the renewal process can differ significantly.
- Renew through our website: For customers looking to renew their ICBC policy or other government-run insurance coverage, our website provides a streamlined process. Skip the hassle of navigating multiple platforms and use our user-friendly interface to complete your renewal. You can also explore additional coverage options that may better suit your needs.
- In-person: If you prefer face-to-face interactions, visit an ICBC Autoplan broker to renew your policy and discuss any updates to your coverage.
- By phone: Some Autoplan brokers offer renewal services over the phone for added convenience.
For other government-run providers such as Saskatchewan’s SGI or Manitoba’s MPI, the renewal process may vary slightly.
Renewing with ICBC and other government insurers
ICBC (British Columbia)
ICBC, the government-mandated insurance provider in British Columbia, requires drivers to manually renew their Basic Autoplan insurance. Here’s what you need to know:
- Renewal Period: ICBC allows renewals up to 44 days before your policy expires. This gives you enough time to adjust your coverage if needed.
- No automatic renewal: While some private optional coverages purchased alongside ICBC insurance may renew automatically, Basic Autoplan does not.
- Use our website: Visit Western’s website to renew your ICBC policy online and discover additional resources to simplify the process.
SGI (Saskatchewan Government Insurance)
In Saskatchewan, SGI operates a public auto insurance system. Unlike ICBC, SGI offers automatic renewal for its policies, provided there are no changes to your account, such as missed payments or altered coverage requirements. Drivers are notified about their renewal and can make changes if needed before the automatic renewal takes effect.
MPI (Manitoba Public Insurance)
Manitoba Public Insurance (MPI) handles auto insurance for residents of Manitoba. Like ICBC, MPI does not automatically renew policies. Drivers must take action to renew their coverage, whether online, by phone, or in person at an MPI service centre. For a faster, easier option, visit our website to manage your renewal today.
Why doesn’t every insurance provider offer automatic renewal?
While automatic renewal provides convenience, it isn’t always feasible or desirable. Some insurers, especially government-run providers, require manual renewal for the following reasons:
Policy updates: Manual renewals ensure that drivers review their coverage and make necessary updates, such as adjusting liability limits, adding optional coverages, or removing outdated vehicle details.
Regulatory compliance: Public insurers often have stricter guidelines for policy renewals, ensuring drivers are actively involved in maintaining adequate coverage.
Risk management: Insurance providers may require manual renewal if a customer’s risk profile has changed, such as after an at-fault accident or significant change in vehicle use.
What should you do before renewing?
Regardless of whether your insurance renews automatically or manually, it’s essential to review your policy carefully before the renewal date. Here are some key steps to take:
- Compare quotes: Shopping around can help you find better rates or coverage. Even if you’re satisfied with your current provider, it’s worth comparing other options.
- Review coverage needs: Life changes—such as moving, buying a new car, or adding a teenage driver—might require updates to your policy.
- Check discounts: Ensure you’re taking advantage of available discounts, such as bundling home and auto insurance, having a clean driving record, or installing winter tires.
- Update information: Confirm that your address, contact details, and vehicle information are accurate to avoid complications.
- Contact your provider: If you have questions or want to make changes, reach out to your insurer before the renewal date.
What happens if you miss your renewal date?
Missing your renewal deadline can lead to a lapse in coverage, which can have serious consequences:
- Fines and penalties: Driving without insurance is illegal in Canada and can result in steep fines and demerit points on your license.
- Higher premiums: Insurers may view a lapse in coverage as a risk factor, leading to higher premiums in the future.
- Loss of discounts: Continuous insurance coverage is often a requirement for certain discounts. A lapse can disqualify you.
To avoid these issues, mark your renewal date on your calendar and set reminders well in advance.
Key takeaways
- Private Insurers: Many private car insurance providers in Canada offer automatic renewal, but you’ll need to check with your provider.
- ICBC (British Columbia): Policies do not renew automatically. Drivers must actively renew their Basic Autoplan insurance, but our website offers an easy solution to streamline this process.
- SGI (Saskatchewan): Offers automatic renewal for eligible policies.
- MPI (Manitoba): Requires manual renewal, similar to ICBC, but you can simplify this step using our Western’s website.
By understanding how your car insurance provider handles renewals, you can stay ahead of deadlines and maintain continuous coverage. Whether your policy renews automatically or requires you to take the steps to renew it, taking a proactive approach ensures you’re always protected on the road.
