How to check your auto insurance renewal before you pay it

Insurance companies review prices every term. Your premium can go up even if you had no claims and nothing in your life changed. That is not always a mistake, but it is always worth a quick look before you pay.

1. Compare the full price, not the monthly payment

Find the total premium for the term on the renewal: usually 6 or 12 months. Put it next to the same number from your last term. Monthly payments hide the difference and can include installment fees.

2. Check your liability limits

Liability is written as three numbers, for example 25/50/20: $25,000 per injured person, $50,000 per accident for injuries, and $20,000 for property damage. In Illinois 25/50/20 is the legal minimum.

The minimum keeps you legal, but a serious accident can cost more. Anything above your limits can become your personal debt. Many drivers choose 50/100/50 or 100/300/100.

3. Look at the deductibles

The deductible is what you pay yourself on a comprehensive or collision claim before the insurer pays. A higher deductible lowers the premium, but you pay more after an accident. Check that the deductible did not change without you noticing, and that you could pay it tomorrow if you had to.

4. Make sure the drivers, cars and discounts are right

• Drivers who moved out or no longer drive are removed.
• A car you sold is no longer on the policy.
• Your address, garaging address and yearly mileage are current.
• Discounts you qualify for are listed: home and auto together, paying in full, safe driver, good student.

5. Check what was added or removed

Compare the coverages line by line: uninsured motorist, rental reimbursement, towing. Sometimes a coverage disappears and the price still goes up. Sometimes a coverage you never asked for is added.

When is it worth comparing?

If the price went up noticeably and nothing changed for you, compare two to three weeks before the renewal date. Compare like with like: the same limits, the same deductibles, the same drivers and cars. Otherwise a cheaper quote may simply cover less.

Not sure how to read your renewal? Send it to us and we will go through it with you and show what the other options look like, side by side. The decision is always yours.

This article is general information, not advice for your situation. Coverage, prices and discounts depend on the policy, the insurance company and your details.

← All articles