Renewing insurance coverage

By Sandra Boncek

If you choose your insurance policies wisely, you will likely end up with coverage that will last for several years. So it helps to make the renewal process as simple and as painless as possible from the get go.

How to simplify renewal:

Synchronize the dates. Try to arrange your insurance program so that a common renewal date is used for all policies. Not only does this allow much more flexibility to switch carriers in the future if you choose, but it also minimizes the effort to manage all the policies. Avoid January 1 or July 1—these are the busiest times of the year for the insurance industry.

Renew early. Ideally you will want to start the ball rolling 2 to 4 months prior to renewal date. Try to receive quotes on premiums a few weeks in advance of the renewal date to give you enough time to respond accordingly.

Check the records. At renewal time, make sure your insurer has the correct information about your company's loss history. This data will be factored into your premiums and should be checked to make sure you are not unfairly assessed a high premium.

Extend cancellation notice. You may want to see if you can extend the number of days in advance an insurer must notify you of an intent to cancel a policy. See if you can stretch the typical 30-day notice to 60 or even 90 days. Then you'll have more time to shop for new coverage if needed.