But how often is enough? Should you check every five years or five months? According to insurance experts, you should consider looking for a new provider whenever your policy expires. You should also collect quotes and search for new providers after major life events.
Keep reading to learn about five times you should consider looking for new insurance providers.
1. When You Move
Moving can affect your car insurance in all sorts of ways. You may get a cheaper rate based on the neighborhood you live in, your commute to work, and new homeownership. Especially if you are planning to bundle your car and home insurance, this is a great time to get new quotes and potentially switch insurers.
2. When You Get a New Car
Buying a new car is a life event that can also affect your car insurance rate. Your premium should go down if you bundle your new car with the same policy, but this may be another good time to switch providers if you find a better deal elsewhere.
Adding a car is the perfect time to search for quotes because most providers offer discounts on newer or safer vehicles. So this is also the time to go for those safety upgrades you’ve been wanting.
3. When You Plan to Add a Driver
Adding new drivers to your policy, whether you get married or have a teen that’s starting to drive, can save you when you bundle those policies together. This is a great time to shop around since most companies give discounts for teen drivers or newly married couples. Check around to see which insurance provider has the best deal for your circumstances.
If you’re adding a young driver to your policy, keep in mind that teen drivers or student drivers usually receive discounts for good grades. If your current insurance provider doesn’t have such discounts, consider looking for a new insurance company.
4. When You Get a New Job
Getting a new job can also affect your car insurance. Just like moving to a new neighborhood, moving jobs will affect your commute, among other things. These factors are considered by insurance companies and may land you a discount.
What if you live in a place with good public transit? Consider selling your car or taking it off the road until you need it again. Suspending or canceling your car’s insurance can save you a lot of money, especially if you have easy modes of transportation available to you.
5. When Your Current Policy Renews
It’s always a good idea to check for new quotes when your policy is about to expire. At the very least, you’re a year older and may qualify for certain discounts based on your age. Also, keep in mind your driving history and your credit score will affect your car insurance policies. You can always work to improve these aspects to get discounts.
Whether you’re trying to save money or have questions about your life circumstances, it’s never a bad idea to get an insurance quote at least as often as your policy renews. Quotes should be free and readily available online, in person, or by phone. Keep in mind price is not the only factor, so make sure you know your needs before you start the shopping process.
When It’s Not a Good Time to Look for New Insurance Providers
There are also times you should not switch insurance providers:
- If you’ve recently had an accident or traffic violation, avoid switching providers, as your rates are likely to go up.
- If your current provider offers loyalty discounts, there’s no harm in looking at what other providers offer. However, you’re likely already getting the best deal.
- If you qualify for accident forgiveness, you may want to shop for other companies that offer this benefit.
The Bottom Line
Whether or not it’s time for you to switch car insurance, it doesn’t hurt to get a quote. Frequently checking your car insurance premiums keeps the prices competitive for everyone and guarantees that you get the best rates available.