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What should I do if my auto insurance renewal is set at $977,400?

The $977,400 renewal quote is likely a clerical error or system glitch, as the average annual auto insurance premium in the U.S.

is around $1,600-$2,400.

Insurers use complex algorithms to calculate premiums, factoring in your driving history, location, vehicle type, credit score, and other variables - a nearly $1 million quote is clearly an outlier.

Insurers are required by law to provide you with a written notice of your upcoming renewal terms, including the new premium, typically 30-60 days in advance.

This gives you time to shop around.

If you receive a shockingly high renewal quote, first contact your insurer to have them double-check and correct the error.

They may have simply input the wrong information.

Review your current policy details - coverage limits, deductibles, discounts, etc.

- and compare rates from 3-5 other insurers to ensure you're getting the best deal at renewal.

Consider raising your deductibles, lowering coverage limits, or removing optional coverages to reduce your premium, as long as it still meets your state's minimum requirements.

Your credit score is a major factor in insurance pricing, so work to improve your credit if possible, as this can lead to significant premium reductions over time.

Ask your insurer about any available discounts you may qualify for, such as bundling policies, being a safe driver, or having safety features on your vehicle.

Timing is important - shop for a new policy 4-6 weeks before your renewal date to lock in the best rates, as insurers often increase premiums right before renewal.

Be cautious of unusually low quotes, as they may come from disreputable insurers with poor customer service or financial stability.

Review your state's insurance department website for guidance on the renewal process and ways to file a complaint if the insurer refuses to correct an error.

If all else fails, you may need to switch insurers to get a reasonable rate, but be sure to maintain continuous coverage to avoid a lapse that could lead to even higher premiums.

AI Insurance Policy Analysis and Coverage Checker - Get Instant Insights from Your Policy Documents (Get started for free)