Knowing When to Shop for Car Insurance

While you might be happy with your current auto insurance provider, it never hurts to at least peek over the fence to see if the policies are more affordable on the other side. Rather than waiting on your current insurance provider to send you a renewal offer, be proactive so you have time to compare prices and decide if you want to switch providers or stay right where you are. Learn why you should shop around and how often.

You’ve Maintained Your Insurance

If you’ve successfully maintained your insurance for at least six months, you become less of a risk in the eyes of insurance providers, which means you’re entitled to some savings. It’s entirely possible for you to save an average of $100 every year on insurance by maintaining your coverage, so be sure to shop around every six months to ensure you’re getting the best coverage at the lowest price.

Don’t Be Taken For Granted

Just because you get along well with your current insurance provider doesn’t mean you aren’t being overcharged. Keeping a policy for several years can potentially lead to you being charged more than is fair. This isn’t to say that all insurance agents are out to take advantage of you, just that it’s a good idea to reach out to local insurance agents from different carriers to see what they’d charge you for your current policy.

You’ve Had a Birthday

Chances are that your agent sends you a card to celebrate your birthday. Rather than throw it away, let it serve as a reminder to reach out to your insurance agent to remind her or him that older drivers usually have lower coverage rates. If your agent shows resistance, suggest lower insurance as the perfect birthday present.

Insurance Rates Fluctuate All the Time

You might not be aware of it, but insurance rates can change from month to month and even day to day due to a variety of circumstances such as recent storms, shifts in your local population and even politics. This is another reason to consider looking into getting new insurance every six months, as you never know when rates will drop in your favor. Your local population is one of the biggest determining factors in your car insurance rates. If the population has shrunk in your geographic location, contact your insurance agent to see if you can save some money on your auto policy.

Your Vehicle Has Depreciated

The value of your vehicle depreciates over time, and less expensive vehicles are usually less expensive to insure. In most cases, the cost to insure a vehicle decreases roughly 2.4 percent every year, 20 percent if you own a luxury vehicle model that’s at least five years old. Do some searching and ask questions to see if your current insurance provider is willing to give you a discount for your car having a birthday.

Your Life Changed

If you’ve had a life event, such as getting married or having a baby, you might qualify for less expensive insurance. Married couples often have access to better rates, and you can even see savings if you’ve improved your credit score over the months or years. Have you become a homeowner for the first time recently? That could net you a cheaper policy as well. No matter how major or minor the event, you never know how it might impact your car insurance rates, so be sure to inform your agent of the recent changes to see if you qualify for a lower rate.

Never settle when it comes to your car insurance. Even if you have no problem paying your current rate, it never hurts to do what you can to save some money while enjoying the same protection.