Renewing your car insurance is one of those life events that can sneak up all too quickly, and when it does, you may suddenly realise you’re not entirely sure how the process works.
For example, does your car insurance renew automatically? Why might your premiums have changed this year? And what should you consider before renewing with the same insurer?
Vehicle insurance renewal time presents a prime opportunity to review if your current policy still suits your needs. So, before simply renewing your car insurance on auto pilot this year, it might be worth spending a little time getting to understand how the renewal process actually works.
It could be that there’s another policy out there that’s a better fit for your vehicle and budget. For context, the price of car insurance rose by almost 6% between 2024 and 2025, according to Canstar data, but on the upside, the same research also found that cost-conscious drivers could save $692 on average by shopping around and switching to a new insurer.1
In this guide, we zero in on some of the common confusion around car insurance renewals, and share some things you might wish to look into before hitting ‘go’ for another 12 months of the same coverage.
Does my car insurance automatically renew?
Each insurer has their own process for managing motor insurance renewals but, generally speaking in Australia, it’s likely that your car insurance policy will renew automatically. This typically means you’ll receive a renewal notice from your current insurer, reminding you that your car insurance is expiring shortly, and offering you an opportunity to renew the policy.
Unless you contact your insurer and opt out of auto renewal, your insurer will usually continue to debit the premiums for the renewed policy using the payment method you’ve provided.2
“With Youi car insurance renewal, before your policy expires, we’ll review your policy, premium, payments and claims. We’ll then send you a notice to remind you of the date and time your policy expires and the terms on which renewal may be offered,” explains Marni Jackson, Youi’s Head of Product – Vehicle and Lifestyle.
“If you’re set to auto renew, your policy will renew on the renewal date using the payment method you’ve provided. If you’ve opted out of auto renewal, you’ll receive a renewal offer ahead of time and will need to make contact to accept the offer.”
While automatic renewal is common, it is not universal for every single policy. Always check your specific Product Disclosure Statement (PDS) or contact your provider to confirm.
When will I get my car insurance renewal notice?
Insurers have their own deadlines for managing auto insurance renewal notices, but you should generally receive a renewal notice at least 14 days before the policy ends.2
“Youi sends customers a renewal notice around four weeks before a current policy expires. This gives our customers time to review the new policy details, to check that all the details are correct and up to date, and to make any changes,” says Jackson.
This also gives you time to shop around if you’re wanting to insure with a new provider, or negotiate a better deal with your current provider, if you’re unhappy with the conditions included in your insurance renewal notice.
What’s included in a car insurance renewal notice?
A car insurance renewal notice typically includes key information including:2
- The renewal date and period of cover – most policies typically have a 12 month contract period
- Details of the type of cover being renewed – Comprehensive, Third Party Fire & Theft, Third Party Property Only or Compulsory Third Party (CTP) insurance
- The insured value – your car’s value depreciates every year, so it’s important to check the insured value on your renewal notice
- The excess amount if you need to make a claim
- The insured driver’s – or other listed drivers’ – details and the car details
- The new premium
- The policy’s limitations and exclusions.2
What are your insurer’s obligations to you at renewal time?
The Insurance Council of Australia’s voluntary General Insurance Code of Practice outlines standards for insurers to meet when providing services to their customers and this includes being “open, fair and honest”.3 Information about insurance cover and policies must also be presented in simple terms that customers can readily understand.3
Under the Code of Practice, each time your car insurance is automatically renewed, your insurer should:3
- Remind you about the automatic renewal process
- Remind you that you can opt out of that process
- Tell you to check the amount of your sum insured to see if your level of insurance cover is still appropriate for you.3
What should I consider before renewing my car insurance?
Beyond confirming that the details on your car insurance renewal notice are still correct, and notifying your insurer to amend any errors, you may want to think about whether your current level of cover still reflects your needs. For example:
- Have you changed how often you drive your vehicle or how you use your car? Perhaps it’s now for personal use only when you used to use it for business?
- Is your car now kept in a garage overnight when it used to be parked on the road outside your home?
- Have you recently traded in your old runabout for a shiny new set of wheels or made any modifications to your car?
It stands to reason that you may also want to consider whether another insurer is offering a comparable type of cover at a lower price. Renewal time is the perfect moment to switch your car insurance because you’ll avoid having to pay any penalties that can sometimes apply if you cancel your policy mid-term.
If you’re looking for comparative quotes, keep your renewal notice handy. It has lots of info that will help when comparing cover,” notes Jackson.
“If you decide not to renew your current policy and it’s set to auto-renew, remember to inform your current insurer. It’s important to manage the transition between insurance policies carefully to avoid gaps in coverage or any overlap. You can arrange for your new insurance to begin on the date when your old insurance lapses.”
How do I renew my car insurance with Youi?
Youi’s car insurance renewal process is designed to be as straightforward and transparent as possible:
- You’ll receive an insurance renewal notice from us via email. This will arrive around four weeks before your existing car insurance policy expires.
- We’ll advise you of the terms on which we’ll renew your policy, or advise you that we will not renew your policy. You can ask questions about our policy renewal by calling 13 YOUI (9684).
- If you want to update your policy, you can let us know which details on the new policy are inaccurate or need to be changed. This can include changes that have been made to your vehicle, if the vehicle is being kept at a different address, or if there are changes in terms of who’ll be driving the car.
- If you decide to renew your car insurance with Youi, insurance premiums will continue via direct debit using your chosen payment method.
- If you want to opt out and not renew your car insurance with Youi, you can call 13 YOUI (9684) before the renewal date to cancel your policy.
Can I renew my car insurance before it expires?
Once you receive your renewal notice, some insurers may allow you to renew your car insurance – even if your current car insurance hasn’t yet expired. At Youi, you’ll need to wait until the new contract start date before we can accept your payment for renewal.
Can I renew my car insurance after expiry?
In short, yes. However, if your car insurance lapses before you renew it, bear in mind that it may leave you without any cover for damage to your own car, or leave you fully liable for damage you cause to someone else’s vehicle or property.2
Some insurers may grant you a short grace period, after the insurance renewal deadline, if you haven’t yet paid your premium. The insurer will continue the policy and still provide you with insurance cover, as long as you renew the policy within this grace period. The length of the grace period varies but is typically up to 28 days.4
Will my CTP renewal appear on my car insurance renewal notice?
As the name indicates, Compulsory Third Party (CTP) insurance isn’t optional and is mandatory for all vehicles registered in Australia, as it covers you for financial compensation claims if you injure or kill another person in a vehicle accident.5
States and territories have different methods for purchasing CTP insurance. In some states, for example, it’s paid with your vehicle registration but in NSW, CTP has to be bought separately before you can register a vehicle.
Because each state and territory manages CTP insurance differently, it won’t appear on your car insurance renewal notice.
Some car insurance renewal tips
Here are few points you might want to think about when it’s auto insurance renewal time:
- Compare the inclusions and exclusions of different policies to work out if you’re getting a good deal or if you could do better with another insurer.6
- Compare any differences between organising your car insurance online vs through a broker to determine if there are potential gains or savings.7
- Ask if you’re entitled to any discounts such as a no claim bonus, multi-policy discount or a new customer discount.6
- Check if your insurer always charges an excess, even if you’re found not to be at fault.6
- Review your payment frequency; it might be that you can save on your premium by paying in an annual lump sum, rather than in 12 monthly instalments.6
- Consider if you can afford a higher excess; if you increase the amount of excess you’re willing to pay, you may save on your premium.6
“It can also be helpful to set a calendar reminder so you know exactly when your car insurance is coming up for renewal,” suggests Jackson. “That way, you’ll never be caught off guard when your renewal notice arrives.”
If it’s that time of year again and you’re weighing up whether to stay with your current insurer, boost your coverage level from Third Party Property Only or Third Party Fire & Theft to Comprehensive or move to a new provider, consider starting a quote online with Youi or giving us a call on 13 9684.
1 Source: Canstar – Car insurance prices continue to accelerate, June 2025
2 Source: Canstar – Car insurance renewal: what you need to know, May 2025
3 Source: Insurance Council of Australia – General Insurance Code of Practice, October 2023
4 Source: Insurance Council of Australia – ABC’s of General Insurance
5 Source: CTP Insurance Regulator – About CTP insurance
6 Source: Moneysmart – Choosing car insurance
7 Source: Canstar – Car insurance brokers: what do they do?, June 2025
