Shopping for car insurance most likely isn’t something that you do frequently. Many car owners carry their insurance for years without giving it a second thought. Renewal periods come and go, and you continue to pay that policy on auto-draft.
If this sounds familiar to you, now may be a good time to review your policy. Are you paying more than you expected? Over time, your premiums may have increased. You do not need to wait for your renewal period to shop, in fact, shopping insurance before your renewal may even give you leverage. Some find that if they are quoted better insurance elsewhere, their current carrier may offer optional quotes for them to stay.
After you get other quotes it’s important to compare what all companies are offering, remembering the old saying, “it’s not what you pay…. it’s what you get”. Not all quotes are the same. For a variety of reasons, you will want to make sure the comparison quotes are as close to what you currently have as possible. Otherwise, you may unintentionally end up with less coverage in an area that you need it. In the end, whether you choose to switch carriers will depend on your coverage needs, budget and personal preference.
There are some instances which make shopping for auto insurance a good idea.
Violations Fall Off Record
Auto insurance companies review your driving history, and even one small ticket can drive up your rates. It is important to know when your infraction falls off of your record, then shop for better rates after this happens. Without the violation on your record you are bound to find something better!
You’ve Recently Moved
Insurance rates can vary by where you live. So, if you have recently moved you may want to shop for better rates. The rate may decrease if you move to an area that the carrier has better experience in or wants to gain market share. Either of these reasons can mean savings for you!
Trends show that married people tend to have lower rates. Your rates may decrease once you’ve gotten hitched for a variety of reasons. For example, if you have always insured one car on your policy and now you add your spouses, you may be eligible for a multi-car discount. This could save you 20% on your previous rate and your spouse will get the same discount when you combine on one policy.
Teen drivers are undoubtedly one of the most expensive groups to insure, and unfortunately it takes many years to be considered mature enough by carriers to earn a better rate. Usually once you are out of your twenties, rates continue to decrease until around age 60. You’ve hit the lower rate window, congrats!
Your Insurance Score Improved
Your insurance score (similar to a credit score) is comprised of over 100 different elements, but carriers pick and choose certain factors when they are computing your rate. If you’re insurance score changed since the last time you shopped, you are due. Side note: In some States (including Michigan) it is illegal for companies to take into account your actual credit score when calculating insurance premiums. But be aware, there are similarities between credit scores and insurance scores.
Insurance Laws Change
Have you heard about the 2020 auto reform in Michigan? Yep, that is a big one. This makes it a good time for virtually all Michiganders to shop for auto insurance (so what are you waiting for? Click here for your free estimate). Laws are constantly changing, so it is important to keep up with these changes and shop when it is advantageous to you.
Your Vehicle Depreciated
Sad but true, old Sally isn’t what she once was. But that is okay! You may get better rates as her value has decreased. Definitely a silver lining!
There are many reasons that constitute a good time to shop car insurance. iSCHURING makes it easy as we offer free, no obligation and no hassle quotes. It can’t hurt to shop, and you will be getting quotes from industry leaders. Enter in your information once, get multiple quotes to choose from. Use these as leverage with your current provider, or switch to one of our carriers. You do you. We will be here if you need us.
iSCHURING’s Resource Center is meant to provide an overview of the topic, rather than an in-depth review. When deciding how this information applies to your specific situation, we recommend discussing with an iSCHURING licensed insurance agent. Any information provided at iSCHURING may also need to be reviewed by an attorney or tax consultant to determine the best course of action for your unique situation. No information may be copied, reprinted or otherwise reproduced without the expressed written consent of iSCHURING.com.