Have you stayed with your current auto insurance policy because it is more convenient than changing policies? If you have, you are like the majority of car owners. Paying that premium month after month becomes easier than shopping for a better policy or better premium prices. There are some compelling reasons why you may need to buy a new policy for your car.
Car repair costs creep up.
Each year, most car insurance premiums go up on existing customers. This happens for two reasons: The cost of auto body repair increases steadily, and parts and labor both go up annually. Insurers raise premium prices to cover their costs.
You’re not a new customer anymore.
Insurance companies frequently give a new customer discount to get people to buy their product. Once you are locked into the policy, the company will add small increases each year to recover the cost of selling you a cheap policy initially. After a few years, that discount is erased and you pay high premiums. The only way to recover that discount is to buy a new policy. Usually, this has to be with a new company.
Buying a new car insurance policy is needed to exit high-risk insurance.
If you have found yourself in the bad position of having to buy high-risk car insurance, you have felt the pain of the enormous premiums that are associated with it. Very few high-risk insurers will write you a nice note and tell you that it is time to find cheaper insurance. It is up to you to begin to shop for insurers who will cover you at the lower risk prices. After a couple of years of being high-risk, most people will qualify for better rates.
Buying a new car may make it necessary to shop for a new car insurance policy.
If you have been driving an old clunker, you may need to buy a collision and comprehensive policy. This policy may be with your current insurer or with a different one. Either way, it is a good idea to take this opportunity to shop for the best possible rates with the lowest deductibles.
Car insurers change their rates every few years to stay competitive.
Each year, one car insurance company or another will lower their overall premium rates. If they do not lower them, they may hold the line while everyone else is going up. As the consumer, it pays for you to explore insurance rates every two or three years to find the company that offers a good policy at a low price.
If you move, you should shop for new car insurance.
Different parts of the country, the state, and most cities will be rated differently by insurers. Your current car insurance company will adjust your premium amounts following your relocation. This is a good time to explore the insurance market in your new location. A move to a rural area from a city can save you hundreds of dollars per year.
As you get older, you need to check on new car insurance.
Every insurance company interprets the actuarial tables differently. The cutoff ages for discounts and increases in premium amounts can vary from company to company. As you age, it is important to check to find those companies that sell their product cheaper to people your age. This can be true as you move from your teens to your twenties or from your sixties into your seventies.
Look for new insurance when your number of insured drivers grows.
When it is time to add your son or daughter to the policy, shop for the best prices. Some companies have a real aversion to young drivers and price their products accordingly. Making a few phone calls can let you know if you are getting a good deal or it is time for a change.
Look for new car insurance when it has been more than five years since your last ticket or accident.
Tickets and accidents make it hard to find cheap insurance. Five years is the magic number for most insurance companies to look back. When you know that you have logged enough time to be beyond this point, shop for a new car insurance policy. It might be the right time to save money.
Shop for a new car insurance policy when you get a substantial increase in income.
While most of the time you change insurance companies to save money, it you have just received a big raise, you may want to think about increasing your coverage. You may have been living dangerously with too little car insurance for a few years because of budget issues. If you now have enough money, it may be a good time to add on those coverages that will offer you much better protection. Things like lower deductibles or comprehensive insurance could be good areas to look into. If you have just bought a house, consider getting a new car insurance policy from the company that insures your house to get a nice discount.