As each year draws to a close, it’s a good idea to review your living and family expenses to identify opportunities to maximize your money or potentially save money in the future. This may include seeing what insurance you have for your vehicle. If you’ve moved house or your auto insurance policy no longer suits your needs or the premiums are too high, it’s time to consider shopping around.
This annual financial review may even include car insurance policy. Does your current policy still fit your needs? The cost has increased beyond what you have budgeted for? Can you get a new policy for less elsewhere?
Making sure you’re getting the best deal for your money shouldn’t be the only reason to buy a new quote. You may also need to do the same if you have been through many life events.
When to buy a new auto policy
There are several key times when you should consider requesting a new auto policy quote. These include when you move to a new location, add a new driver to the policy, and when you purchase a new vehicle. But these are just a few of the occasions when you should explore your options.
“The auto insurance market is highly competitive and consumers have a wide range of choices,” said Pat Callahan, president of Progressive’s personal line. “Because prices vary between insurers and rates change frequently, consumers are likely to shop at least once a year.”
When you move
When moving from one state to another, your insurance policy cannot simply transfer with you. Auto insurance laws vary from state to state. Your policy and its premiums are based on local laws and specific coverage you are required to bring.
But even moving from one city to another—or from one ZIP code to another within the same city—can be a reason to buy a contract, as local moving can trigger Activate changes in your daily commute. Other factors can also change and affect the cost of your policy, such as local crime and accident rates.
“Even moving cities within the same state can affect car insurance rates, as premiums vary by ZIP code. Urban areas tend to have a higher concentration of drivers and a higher chance of accidents, driving insurance premiums, said Renata Balasco, insurance specialist and licensed agent at insurance comparison platform The Zebra. higher average. “If you move from a large city to a smaller suburb or residential area—or vice versa—you may see your rates change due to different traffic statistics.”
When adding a new driver
In most cases, adding a new driver to a policy can result in higher premiums. This is because there’s a higher probability of complaints now, especially when you add a younger driver—meaning another reason you might want to look around and make sure you get the level you need. the most competitive price possible.
“Teenage drivers are the most expensive age group to insure, as insurance companies consider them the least experienced on the road and the most likely to be involved in an accident,” Balasco said. best. “Searching for a new policy when adding someone to it can allow you to browse any available discount opportunities that new drivers may be eligible for; some common examples include discounts for gifted students, discounts for driving courses, or discounts for students away from home.”
When you have a new car
Naturally, when buying a new car, you’ll want to make sure you have the right insurance. The first step is to notify your current insurer, as you must, to update your coverage. This process often results in a new cost for the policy.
“The year, make and model of vehicle you drive have a significant impact on the cost of your policy. Newer cars may have safety features that older cars lack, but parts can be more expensive to replace if damaged,” Balasco said.
If your current policy changes too much for a new car, consider getting some additional quotes elsewhere to find the best price for your situation.
When your policy needs to change
In addition to all the concrete examples discussed, your policy needs may also evolve for other reasons. Perhaps you are a remote worker now and in previous years you had to travel a lot every day. How much you drive affects the cost of your insurance. If you drive less now, you can reduce the overall price of the policy.
In addition, if you the car is getting old and you no longer feel the need to carry as much insurance as you used to. And you can also consider purchasing a new policy quote.
“Changing jobs, starting or ending school, kids going to school or returning home from college, will all potentially change your vehicle and insurance needs,” says Callahan. “So you should contact your current agent or company and potentially buy new insurance if you’re not satisfied with what they can offer you.”
When the policy no longer fits your budget
Of course, you don’t have to undergo major life changes to spur your search for new policy quotes. In some cases, you may just want to do so because Your premium has increased and you need to adjust your expenses to your current budgetary needs—especially at a time when inflation is tightening the budgets of many households.
“Car insurance rates are going up every year, regardless of your driving record,” says Balasco. “If your premiums have increased beyond your comfort—or if you’ve been using a particular carrier for several years—it might be time to shop around. Another insurer may offer lower rates or other discount opportunities.”
4 tips when buying insurance
As you begin to receive new quotes, keep in mind that there are ways to cut costs on auto insurance, but you’ll want to make sure you’re still getting all the coverage you need.
Carmella Cange, Liberty Mutual’s insurance manager for personal line product design and experience, US global retail, advises: “It’s important to compare coverages with an existing policy. yours rather than just looking at the price. “Companies may offer different levels of coverage or limits on their quotes, which is often the cause of the price difference. Customers should make sure they are comparing costs with similar policy terms.”
It’s also important to read the fine print of the quote, as some companies may offer prices based on a six-month policy versus a 12-month policy to make it appear cheaper.
Other ways to shop around include:
- Use online quote comparison tools: Online comparison platforms make it easy to review insurance options and quote in one place. It can simplify the shopping process and save you time.
- Working with an independent insurance agency: When you work with an independent agency, they compare the purchases for you.
- Package Policy: If you’re looking for more ways to save money, you might as well combine your insurance policies. This means using an insurance carrier to provide you Home page, tenant, car, pet, and life insurance—or any of those policies you ask for. Often, a plan can get you multiple policy discounts and makes it easier to manage all of your policies in one place.
Carried away
Buying new car insurance at least once a year can save you money and also help you tailor your policy to fit your current lifestyle and lifestyle. budget demand. When you’re looking for a new quote, make sure you’re comparing coverages and policy terms that are equal in price. You can also make the shopping process faster and easier by using an insurance comparison platform or working with an independent insurance agent who can do the comparison shopping for you.
