Premium calculations are so complex today that even a slightest change in circumstances can put another automobile insurer in more competitive position. That is why you may need to consider switching to get the best coverage, price and service. When that happens, it may be the best time to comparison-shop to figure out where you stand.
Usually, it is difficult to choose the most opportune moment to make a move. In fact, you don’t even know if you need it until you find out about the alternatives. It only makes sense if you are replacing a failing provider with a promising one that offers instant benefits like lower premium.
There are several good reasons why people replace auto insurance companies. Of course, the central reason should be to save money while at least maintaining the same protection and service. So, lets have a look at some of the largest changes we go through in life and how they may affect the current position.
The best time to get vehicle insurance quotes is the time there are large shifts in the factors that can affect the premium enough to make switching an attractive option. And this happens more often than you think.
You shouldn’t just look at how much you can reduce the premium but make sure to take coverage differences into account, when considering a substitution for the following reasons. Is it really a good idea to go for a $50 discount on a policy if it means increasing deductibles or decreasing coverage levels?
Here are 10 life developments that are probably good times to start shopping around. Getting a few alternative quotes quickly tells you where you stand with the current one. Then, it is up to you to make the move or stay loyal even it means paying a little bit more.
- Renewals
The number one reason to swap vehicle 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 in this trade to cut costs while not giving up anything in exchange.
Even the particulars are the same at renewal, you can still save money with another company because of the shifts in their price structure. So, renewal time is always the best time to get quotes.
- Married or Divorced Recently?
Changing marital status in either direction is a prime time to see how did it affect the premium. 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 adjustments to reflect current status. So, why not take this opportunity to see if it is time to economize some money.
- 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 figures of any demographic, premiums for teenagers are typically more expensive. The more you shop around the higher the chance of finding lower rates. You will see huge cost increase when you add a teen driver onto your policy that this definitely qualifies for one of those times you may be priced out.
- Driving History Drop-off
Were you convicted of a DUI? Have a reckless or careless driving charge or multiple speeding tickets on record? When these items fall off, typically within 3-5 years, you will have a lot more options available in the competitive market. If you are on a shared-risk plan in some states, you could save 50% or more when you come out of it. Also, this may be a good time to replace non-standard auto insurance companies with one of the well-known mainstream ones.
- Buying Your Dream Car
Replacing a minivan with a sports car with an existing carrier will often spike rates. However, if you comparison-shop you can often find better deals. Not all of them treat these cars the same way. If you have a spotless record, you should be able to get a reasonable deal. But this will only happen if you search for the best.
- Graduation Day
If you have recently graduated from a professional degree program, new professional status as an engineer, doctor, pilot, nurse, dentist and many more could mean large discounts. If you maintain a certain GPA while in school you may qualify for even cheaper rates as well.
- Amazing Credit
Do you have a credit score above 500? Never missed a payment or made a claim? Most companies use a credit-based score that determines your risk levels. It will take into account more than just a credit score but can ensure favorable pricing (except in California, Hawaii and Massachusetts, where it is banned). Depending on the score you may find deals that entice you away.
- Evolving Insurance Needs
Have you considered increasing protection levels? Different companies target different segments of the market. So if you have the cheapest coverage and want to increase it you may find that another carrier may be cheaper for full coverage. Don’t assume that a company will always be able to offer competitive quotes regardless of new developments.
- Experience Milestones
When you start driving as a teenager there are major age or experience milestones that many of them watch 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 see; does car insurance go down at 25?
- Buying a Home
With a home and car multi-discount you can often reduce the overall costs. Furthermore, homeownership is a factor that positively affects rates. Buying home is definitely one of the best reasons. As with all attempts to change insurers be sure to check what the price movements are as well as coverage, deductibles and services provided.
As discussed above, the best time to switch car insurance companies may actually be a time you need to make a decision on coverage anyway. If you do not check prices during any of these major developments, you probably spend more than you should. With most of them you will save between 10-20% when you move every few years. Based on average cost of automobile insurance, it equates to $65 to $273 every year. It can actually be considerably more.