Renewing Insurance Early to Save Money

Those offering advice about insurance plans often tell you it is easier to get a good rate on a new policy when you still have a policy in hand. This makes you look like a customer that can be trusted to upkeep a payment schedule and has no issue getting accepted for coverage. If you need to renew your policy this can be a great strategy for getting new coverage at a reasonable price instead of being forced to take whatever price you are offered so you do not have to go a long time without protection.

When to Renew

Some policies have requirements as to how long you must keep your coverage before you can apply for a new contract or make changes to your policy. Be sure to read about these restrictions carefully before talking to your provider about renewing your policy to avoid having to pay hefty fees for violating the terms of your current contract. These fees may apply even if you are purchasing coverage from the same company so do not assume that you will be exempt because you are making a renewal rather than a transfer.

Similarly, some insurance companies list a fee for those who wait to renew their coverage. There is a timeframe in which the renewal process begins and if you do not file the necessary paperwork within this time frame you can run the risk of losing your coverage or having to pay extra costs to keep your contract. Read all of the information you are given with your insurance policy and make a note of these dates so you can act within the recommended time frame for all the maintenance you are expected to perform on your account.

Applying for a renewal early gives you time to debate the price. If you do not have to renew, then you have time to compare offers from other companies that might be more worthwhile than the price your current insurance agent has on the table. Your agent knows this as well, so they will work to give you a better price if it looks as though you will take your renewal options elsewhere so be open and honest about your needs and expectations to make sure you get the best price possible.

Insurance companies want to keep their customers instead of losing them to cheaper competitors every time a renewal period arrives. To avoid losing loyal patrons and a source of income for the company, many insurance agencies offer a discount for those who are willing to renew early in order to entice them to stay. See if your contract or any of the literature your company sends you makes mention of such discounts so you know when they go into effect and what you need to do to take advantage of the savings. Offers for such savings are often sent in the mail so sift through your junk mail to find potential offers.

Renewing an insurance policy early to save money can indeed be a resource that can lower your monthly premiums or at the very least allow you to sidestep application fees and other costs that come with reinstating your coverage. Being aware of what you need to do in order to take care of your policy and what the standard prices are for this maintenance will help you avoid penalties that can greatly add up as the life of your policy continues. Starting on the renewal process early helps guarantee that you will be accepted for another contract.

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