How Often Should I Shop for Car Insurance?

Naturally, insurers and agents want their customers to keep renewing policies on autopilot year after year. This makes life easier for them and that is why they often advocate staying loyal. However, there are obvious benefits of shopping for vehicle insurance by getting quotes from various companies and comparing at least once a year. This process serves other purposes as well, like making sure policy details are still up to date and keeping companies honest.

On the other hand, there are hardly any advantages of staying loyal to one company, even though people aren’t sure if they are competitive, generous in paying claims or any good as a company. Often, the only reason they are insured with their current carriers is that they found them first, which isn’t a good enough reason and leaving it to chance.

Checking for alternatives doesn’t necessarily mean people will switch. It is good to know where they stand with the current automobile insurer and take it from there. Also, this process is healthy as it allows going through policy details again and seeing if anything changed. That is why most experts suggest that people should get a few car insurance quotes at least once a year and compare them in detail.

Many things can change in a year within the highly competitive and innovative auto insurance industry.  People’ circumstances change a lot as well, like improving credit score, moving home, jobs, starting to work from home, getting married, divorced, finding a new partner or separating, children getting driving licenses, leaving for college or flying off the nest. They may also replace their vehicles with a totally different model or buy an electric automobile this time.

That is why motorists should take the time to evaluate circumstances and see if they need to adjust coverage accordingly, add or take off a driver, make sure the details on record are still accurate and reflect their current position. Leaving policies renewed automatically bypasses all these necessary tasks.

While you are at it, you should get a few car insurance quotes to see what is happening in the market lately. A new coverage option may catch your eye, you may learn about an innovative way of insuring automobiles or discovering a great price from one of the leading insurers. In the worst case, you may learn that you still have a very good coverage and price, which would be pleasing.

Even if the current provider is still the most competitive company there is still a chance they could reduce rates further. For example, you may remember a positive change in your position that allows you to get further discounts, like dropping a driver who no longer uses the insured vehicle. If you don’t look into it you will never know about these things.

People spend around 70 minutes shopping online for things like laptops, according to surveys. This can save them at best around $100 for a high-end laptop. They can get automobile insurance quotes online in under 10 minutes today so they can easily save several hundred dollars, depending on current costs, where they live and competition in the market. Now, that is worth sparing time and doing every so often. 

More motorists should regularly shop around because it keeps insurers honest. They are known to profile their policyholders in a view to charge more to customers who aren’t expected to switch. This is a scary thought and commonly known as price optimization. It is not something they would readily accept but a few experts believe it happens. That is why they hardly offer new products and special discounts to their existing customers unless they find out on their own and ask for them.

This process has hardly any downside other than an hour of time spent. Current insurers would never know that their customers are looking for better deals. It may even be better that they do, as they may do something about it like reducing premiums a bit to stay competitive. People shouldn’t worry about how many companies they contact because getting car insurance quotes doesn’t affect credit score, either. It is considered a soft pull and ignored by credit agencies.

In conclusion, motorists should at least check once a year that their details are up to date, coverage requirements are adjusted according to their current needs and they pay a competitive price for automobile insurance.