10 Best Times to Switch Auto Insurance Companies

There are several good reasons why people switch car insurance companies. Of course, the central reason should be to save money while either maintaining your current coverage, getting more coverage or obtaining a better service. Usually, it is difficult to choose the most opportune moment to change your insurer. However, there are many circumstances that require closer look at your current auto insurance coverage, costs and insurer.

The best time to get car insurance quotes is the time your circumstances changes enough to make switching insurers an attractive option. And this happens more often than you think.

You shouldn’t just look at how much you can save but make sure to take coverage differences into account, when considering a change for the following reasons. Is it really a good idea to go for a $50 saving on a policy if it means increasing deductibles or decreasing coverage levels? You really should know what to look for in car insurance while looking to switch. What you should know is this before reading the rest:

Premium calculations are so complex today that even a slightest change in your circumstances or details would put another auto insurer in more competitive position for insuring your vehicles. That is why you may need to consider replacing your current provider to get the best coverage and price.  

Here are 10 changes in circumstances that are probably good times to start looking for auto insurance quotes. Getting a few alternative quotes quickly tells you where you stand with your current insurer, in comparison with the rest of the carriers. Then, it is up to you to make the move or stay loyal even it means paying a little bit more.

  1. Renewals

The number one reason to switch auto insurers is to save money. Most of the reasons below may initiate the search for cheaper and better carriers. However, all being equal, you should be switching to save money while getting better coverage and services.

Even there are no changes in your particulars at renewal, you can still save money with another company because of the changes in their price structure. So, renewal time is always the best time to get quotes.

  1. Married or Divorced Recently?

Changing your marital status in either direction is a prime time to check into your insurance rates. If you are getting married, it can typically lead to better discounts, as married couples are considered to be more responsible. Of course getting divorced should lower the amount paid because you will only be insuring yourself. Then, there are children to consider as they may be listed on your policy. In any case, you will probably make changes to your policy to reflect your current status. So, why not take this opportunity to see if it is time to change your auto insurance company.

  1. Adding a Teenager

One of the most costly additions to an auto policy can be the addition of a child that is just learning to drive. With the highest fatality rates of any demographic, insurance costs for teenagers are typically more expensive. The more you comparison shop with CheapAutoInsurance.net quotes the better able to get a lower rate. You will see huge rate increase when you add a teen driver onto your policy that this definitely qualifies for one of the best times to switch insurers.

  1. Driving History Drop-off

Were you convicted of a DUI? Have a reckless or careless driving charge or multiple speeding tickets on your record? When these items fall off your driving record, typically within 3-5 years, switching carriers can often save you more than most other times. If you are on a shared-risk insurance plan in some states, you could save 50% or more when you make this switch. Also, this may be a good time to move away from non-standard auto insurance companies and buy a policy from a well-known mainstream insurer.

  1. Buying Your Dream Car

Replacing a minivan with a sports car with an existing carrier will often spike your insurance rates. However, if you comparison shop other carriers you can often save money. Not all insurers treat these cars the same way. If you have a spotless record, you should be able to get a reasonable rate. But this will only happen if you search for the best rates.

  1. Graduation Day

If you have recently graduated from a professional degree program, your new professional status as an engineer, doctor, pilot, nurse, dentist and many more could mean large insurance savings. If you maintain a certain GPA while in school you may qualify for even cheaper rates as well.

  1. Amazing Credit

Do you have a credit score above 500? Never missed a payment or made an insurance claim? U.S. insurance companies use a credit-based insurance score that determines if you are a credit risk to the company. It will take into account more than just a credit score but can ensure favourable pricing (except in California, Hawaii and Massachusetts, where it is banned).

  1. Changing Insurance Needs

Have you considered increasing your insurance coverage to full coverage? Different companies target different segments of the market that they ‘specialize’ in. So if you have the cheapest coverage but want to ensure your financial future and get full coverage it may be a lot cheaper with a different carrier.

  1. Experience Milestones

When you start driving as a teenage there are major age or experience milestones that many insurers consider before giving considerable discounts. If you have reached five years driving experience or the age of 25 or both it may be time to get a comparison quote. Aren’t you curious to find out your answer to does car insurance go down at 25?

  1. Buying a Home

With a home and car multi-discount you can often save money. Furthermore, homeownership is a factor that positively affects your rates. Buying your home may not be the best time to get quotes but it is definitely one of the best times. As with all attempts to change insurers be sure to check what the price changes are as well as the coverages, deductibles and services provided.

As discussed above, the best time to switch vehicle insurance carriers may actually be a time you need to make a decision on your coverage anyway. If you do not at least consider swapping insurers during any of these major changes, you probably spend more on insurance than you should. With most insurers you will save between 10-20% when you switch. Based on average cost of car insurance, it equates to $65 to $273 in savings every year. Yet you could save considerably more in your situation.

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