Auto-Renewal Is Easy — But Is It Costing You?
According to Insurance Business Magazine, nearly 64% of Canadians let their auto insurance renew automatically without reviewing it.
It’s convenient, sure. But in Ontario and Alberta, where rates are already high, that habit could be costing you. In fact,:
- Average auto premium in Ontario: $1,744/year
- Average in Alberta: $1,587/year (FSRA, 2024)
- Between 2022–2025, auto theft-related claims increased by over 38% in the GTA alone.
Reminder: Every renewal is a chance to reassess your needs and possibly reduce your costs.
When Does Your Auto Insurance Renew?
Your auto policy typically renews once a year, on the anniversary of your policy start date. You'll receive a renewal notice 30–45 days before that date. This notice includes:
- Your updated premium
- Any policy changes
- A decision from your insurer to renew or not
Is There a Renewal Grace Period?
No. Once your policy expires, you're no longer covered.
Driving uninsured — even for a day — is illegal in Ontario and Alberta. You could face:
- Fines
- Licence suspensions
- High-risk insurance status (and much higher premiums)
Why Did My Premium Go Up?
Even if you’ve had a clean year (no tickets, no claims), your premium might still increase. Here’s why:
| Factor | Impact on Renewal |
|---|---|
| Claims in your area | Local claim volume raises rates across postal codes |
| Insurance fraud | Ontario leads in fraud; insurers adjust pricing to reflect risk |
| Parts & labour inflation | Repairs and parts are more expensive than ever |
| Weather and catastrophes | Storms and floods increase province-wide insurance costs |
| Your own record | Tickets, at-fault claims or adding drivers directly raise premiums |
9 Smart Questions to Ask Before Renewing
- Has your commute changed?
- Do you use your car for Uber, delivery or business?
- Have you added or removed a driver?
- Is your child living on campus or moved for school?
- Do you have winter tires?
- Have you added anti-theft tech?
- Did you modify the vehicle?
- Did your address change?
- Lifestyle change? Retired?
Pro Tip for Used Cars:
If you drive a second-hand car, ask about Optiom coverage:
- Covers cars up to 10 years old
- Offers replacement value coverage in total loss events
- No claims history or experience required
- Available to new Canadians and all qualified drivers
- Up to 7 years of coverage
Can You Switch Before Renewal?
Yes — but check for cancellation penalties. If you’re mid-policy and find a better deal, weigh:
- Admin or cancellation fees
- Remaining premium vs savings from switching
- Ensuring no lapse in coverage
Switching to MIB? We’ll help you ensure your new policy is active before cancelling your current one — for seamless protection.
How to Renew With MIB
Already with MIB? You’re in great hands.
Thinking of switching? Here’s what to do:
- Call us at 1‑855‑482‑5001 or email info@myinsurancebroker.com
- Have your current policy handy
- We’ll do the comparison and guide you to the best option