An insurance policy such as an automobile or home policy can have either a semi-annual or annual term that can be renewed at the end of the policy’s term. An insurance policy renewal can be mailed from the insurer, setup to automatically renew and can sometimes have a discount included. Letting a policy renew is usually a better option instead of shopping for new insurance.
An insurance policy renewal notice is usually sent out to an insured a month or so ahead of the policy’s expiration date. An insurance notice can either be mailed or sent electronically via e-mail. When an insurance policy is renewed an insurer will send new policy forms as well as a billing notice for premium payments. When an insurance policy renewal is mailed to an insured they may need to send back a form indicating they wish to continue their policy. They may also need to send in a premium payment with the renewal notice as well. An insurance company will almost always renew a policy unless they decide to non-renew the policy.
An insurance policy renewal can be sent to an insured in many ways and an insurance policy can be setup by an insured to auto-renew. Many insurers offer the ability for an insured to select an auto-renew option for their policy. An auto-renewal is a convenient option because the insured usually does not need to send any additional forms to an insurer. The insurer will indicate the premium for the new policy term on the renewal notice that they send. An automatic renewal can be setup by mailing a form to an insurer as well as using an insurance company’s web site and by calling the insurer. An automatic renewal is a great option for an insurer to retain their policyholders.
Many insurers offer their policyholders a discount when their policies come up for renewal. Many insurers use this discount which may or may not be called a renewal discount as a tool to retain an existing policyholder. There is a lot of competition between insurance companies which are tying to attract new insured’s. A current insurer that does not want to lose a policyholder needs to offer an incentive to keep their policy in force. Offering a discount on an insurance policy when it is up for renewal is a good way for a company to keep an existing customer. Many times a renewal discount is automatic but will only appear once a policy reaches its first renewal date.
Unless there is a overriding need to obtain a new insurance policy it is usually best to let a current policy renew. However, if an insured has raised their rates or is charging more for a particular policy it may be beneficial to shop around for a new policy. An insurance policy renewal that is setup will generally stay that way until the policy is canceled.