My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.

Growth Strategies

Time It Right

Change your insurance policy renewal date so it works best for you.
Magazine Contributor
2 min read

This story appears in the May 2004 issue of Entrepreneur. Subscribe »

There may be certain times of the year when it's easier for you to deal with renewing your insurance policies. If your policies are expiring at an inopportune time-say, during your off season, when you have less available income to pay your premium-it's possible to change your renewal date.

One alternative involves early termination and renewal of the policy to get you on the schedule you prefer. Or you might renew with a one-time, short-term policy and then return to an annual coverage period.

"There is no penalty for doing this. It's simply a matter of talking with the agent or insurer as [far] in advance as possible," says Alejandra Soto with the Insurance Information Institute in New York City. But, she warns, "Be careful, and make sure there isn't a lapse in coverage when the renewal date is moved."

Another issue to consider is rate increases. Your rates are fixed for the term of the policy, but if you terminate early and renew, the new policy may reflect a rate increase that would not have affected you until the original policy expired.

Getting your renewal dates where they work best for you may take research and juggling for a year or so, but the results will be increased internal efficiency, improved cash flow, more accurate planning and forecasting, easier bookkeeping, and the peace of mind of knowing you have the best coverage for your circumstances.

Jacquelyn Lynn is a freelance business writer in Orlando, Florida.

More from Entrepreneur

Jon Horowitz is dedicated to helping brands with grow their social footprint by aligning with influencers and creating innovative content.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Starting, buying, or growing your small business shouldn’t be hard. Guidant Financial works to make financing easy for current and aspiring small business owners by providing custom funding solutions, financing education, and more.

Latest on Entrepreneur