Your financial situation evolves and car insurance prices fluctuate as well. As a result, it’s a good idea to shop around for auto insurance at least once a year to know what is the best time to get new auto insurance.
The auto insurance industry is competitive, so the company that offered you the most outstanding deal last year might not do so this year. The only way to find out is to compare new auto insurance quotes.
Let’s look at the advantages of looking for vehicle insurance every year, as well as some ideas on how to get a more significant discount.
When is the best time to shop for auto insurance?
You won’t have to wait for your current insurance carrier to give you a renewal letter before looking for new coverage.
The sooner you start looking for vehicle insurance, the more time you’ll have to compare estimates.
You can cancel your current coverage before it ends if you find a policy that works better for you. Some insurance companies will refund the unused portion of your premium; however, you may be charged an early cancellation fee as well as additional expenses.
If you find a better offer, talk to your current insurance company about it. To keep your business, they might try to match it or offer a cheaper rate.
The advantages of comparing auto insurance quotes
Even if you don’t always locate a better offer, looking around ensures that you don’t miss any discounts.
According to Experian, credit report inquiries from some insurance firms will not influence your credit history when you seek insurance quotations. This is a “soft inquiry,” which is similar to your requests to examine your credit reports.
Here are some of the possible advantages of shopping for vehicle insurance every year.
It has the potential to save you money
According to the J.D. Power 2017 U.S. Insurance Shopping Study, average vehicle insurance premium rates increased from 2% to 3% in 2016.
According to Bill Hebert, a spokesperson for Mercury Insurance, insurance firms modify their costs regularly.
“There’s a strong possibility you’ll be able to locate a better deal,” Hebert says.
It might help you better comprehend auto insurance
Every time you shop for insurance, you’re expanding your understanding of the vehicle insurance market and the various coverage options accessible to you. This will make spotting possible cost-cutting opportunities much more effortless.
You might choose, for example, to accept a larger vehicle insurance deductible, which is the amount you must pay out of cash before your insurance kicks in to cover any damage.
The monthly cost for a higher-deductible plan is usually lower. The amount you save depends on several criteria, including the make and model of your vehicle. If you decide to increase your deductible, keep in mind that you should choose a deductible that you can afford to pay if you need to file a claim.
It has the potential to lower the cost of insuring teen drivers
When you include a teen driver in your family’s policy, comparison shopping is essential because children are known for raising insurance prices.
However, there is some good news: some insurance companies provide discounts to young drivers who
- Maintain a decent grade point average
- Enroll in a safe-driving course
- Drive at least 100 miles away from home to school and keep your automobile
Check to see whether each vehicle insurance provider gives teen drivers discounts while shopping around.
Best time to shop for auto insurance tips
You can do a few things to boost your chances of receiving a better deal when it comes to auto insurance.
Examine your credit report
Credit-based insurance scores are not allowed to be used to determine vehicle insurance prices in California, Massachusetts, or Hawaii. If you’ve been in a region where this is the case, acquire a sense of your situation by checking your credit reports before going shopping. Then, if there are any discrepancies, file a dispute to check that your credit information is correct.
Take note: Disputes must be addressed within 30 days in most situations, though it may take up to 45 days in some cases.
Try shopping on the internet
Online insurance shopping can be simple. You can compare rates and policy features on some websites. Before you begin, make sure you have some basic information about your vehicles, such as the current mileage, vehicle identification number, or VIN.
An insurance professional may also assist you in evaluating several coverage alternatives to acquire the best auto insurance for your needs.
Annually shopping for auto insurance coverage and reevaluating your policy could lead to lower insurance prices. Starting your search with New Auto Insurance will allow you to effortlessly shop around and compare the options of multiple auto insurers.
If you get a new auto insurance policy, make sure you’re not skimping on coverage to save money — or skipping coverage that your car loan lender or state law demand.
Learn more about auto insurance at newautoinsurance.com.