As we approach the end of each year, it’s a good idea to revisit your household and living expenses to identify opportunities to maximize your spending or potential savings in the future. This includes looking into the insurance you have for your vehicle. If you’ve moved, or your car insurance no longer meets your needs, or is too expensive, it’s time to consider shopping.
This annual financial review may also include auto insurance. Do your current policies still meet your needs? Are you spending more than you can afford? Can you get a new policy that is unique?
Getting the best value for money isn’t the only reason to buy a new quote. You may also need to do so if you have experienced various life events.
When to buy new car insurance
There are some important times to consider requesting a new auto insurance quote. This includes when you move to a new location, add a new driver to your insurance, or buy a new vehicle. But these are just a few of the good opportunities to consider your options.
“The auto insurance market is highly competitive and consumers have a wide variety of choices,” said Pat Callahan, president of Progressive’s personal line business. “Prices vary by insurer and rates change frequently, so it is beneficial for the consumer that he shop at least once a year.”
If you move from one state to another, your insurance policy cannot simply be transferred. Auto insurance laws vary by state. Your policy and its premiums are based on local laws and the specific coverage you need to have.
But even moving from one city to another, or from one zip code to another within the same city, can be a reason to consider a policy shop. Other factors, such as local crime and accident rates, can also change and affect policy costs.
“Prices vary by zip code, so even traveling between cities within the same state can affect auto insurance rates. The higher the likelihood, the higher the average premium,” said Renata Balasco, insurance expert and licensed agent at insurance comparison platform The Zebra. “If you move from a major city to a smaller suburb or residential area, or vice versa, the traffic statistics will be different, so the fare may change.”
When adding a new driver
In most cases, adding a new driver to your policy can result in higher premiums. This is because of the higher billing potential, especially if you add a younger driver. So there’s another reason why you want to shop at the most competitive prices possible.
“Teenage drivers are the most expensive demographic to insure because insurance companies see them as the least experienced on the road and the most likely to get into an accident,” says Balasco. say. “Scrolling through the new policies when adding someone allows you to browse available discount opportunities that new drivers may qualify for. Common examples include good student discounts, auto There are driving school discounts, student outing discounts, etc.
when you get a new car
Naturally, when buying a new car, you want to make sure you have the right coverage. The first step is to notify your current insurer and update your coverage if necessary. This process usually incurs new costs for the policy.
“The year, make and model of the car you drive has a big impact on your insurance premium. If so, it can be expensive to replace,” says Balasco.
If current policies have changed significantly for new vehicles, please consider obtaining additional quotes elsewhere to find the best rate for your situation.
When policy changes are required
In addition to all of the specific examples already discussed, your policy needs may evolve for other reasons as well. Perhaps you are a remote worker now and used to have a fairly heavy daily commute. How much you drive affects your insurance premium. Less driving may reduce the overall price of insurance.
Additionally, if your vehicle is getting older and you no longer need to carry as much coverage as you used to.
“A change of job, starting or ending school, or a child attending or leaving college can change how you use your car and your insurance needs,” says Callahan. “Therefore, we encourage you to contact your current agency or company and purchase new coverage if you are not satisfied with what they can offer.”
When a policy no longer fits your budget
Of course, you don’t have to be going through a major life change to search for a new insurance policy quote. Sometimes you simply want to do so, especially when inflation is weighing on many household budgets, as insurance premiums rise and costs need to be adjusted to meet current budgetary needs.
“Auto insurance rates go up every year, regardless of driver profile,” says Balasco. “If your premiums are rising beyond your comfort level, or if you have been with a particular carrier for several years, it may be time to shop. We may be able to offer discount opportunities.”
4 tips for insurance shopping
When trying to get a new quote, keep in mind that there are many ways to cut your car insurance costs. However, you need to make sure you are getting all the coverage you need.
“It’s important to compare current policies and coverages, not just look at price,” says Carmella Cange, Global Retail Markets US insurance manager responsible for Liberty Mutual individual insurance product design and experience. advises Mr. “Companies may offer different coverages and limitations in their quotes, and this often contributes to price discrepancies. need to do it.”
Some companies may be quoting based on a 6-month policy instead of a 12-month policy to make their prices look cheaper, so read the fine print on the quote as well. It is important.
Other ways to shop are:
- Use our online quote comparison tool: Our online comparison platform makes it easy to see coverage options and price quotes all in one place. Simplify your shopping process and save time.
- Work with independent insurance agents. When you work with an independent agency, they do comparison shopping for you.
- Bundling Policy: Bundling insurance policies is also a good idea if you’re looking for even more ways to save money. This means using one insurance company to provide home, rental, auto, pet, and life insurance, or coverage you need. Consolidation often provides discounts on multiple policies while making it easier to manage all policies in one place.
Buying new car insurance at least once a year not only saves you money, but it also allows you to tailor your policy to suit your current lifestyle and budget needs. When looking for a new quote, make sure you are comparing prices for the same level of coverage and insurance terms. Working together can also make the shopping process faster and easier.