Like it or not, insurance is something you can’t ignore. Home or rental insurance, health insurance, and auto insurance are all incredibly important to protect yourself and stay within the law. Too many people buy the insurance and then keep renewing the same plan over and over without giving it a second thought. The fact is, looking for better deals on your insurance can save you a lot of money in the long run, and could even provide you with better protection.
The insurance provider you choose when you first got your auto insurance may not be your best option today. Their coverage rates could’ve increased each policy renewal, or perhaps you didn’t compare quotes initially to get the best deal. Your best bet is to compare auto insurance companies to find the lowest rate with the best coverage. There are several reasons why this is a great strategy.
The most obvious, and most likely the most important to the vast majority of drivers, is the savings they can get by switching. Insurance premiums tend to go up over time, so it benefits you to try to get the lowest at any particular time. The good thing with insurance is that you can switch providers whenever your current term is over. Most providers will even make the switch for you, so you don’t have to deal with any frustrating customer service agents trying to retain your business.
How to Shop Around
Shopping around for insurance is not all that hard, luckily. You do need to know certain pieces of information to give to insurance providers so that they can give you an accurate quote. It includes your details, such as your address, date of birth, and other demographic information. It also provides information on the make, model, and year of your car, and possibly the VIN. Insurance companies have different criteria that they examine to give a quote, so make sure that you have everything that is requested.
It’s always good practice to get more than one quote. Your first effort might have yielded good results, but you may miss out on even more savings by doing a little bit more digging. A good baseline is three quotes. That way, you have some choices and can choose the one that best balances coverage with the price.
Don’t wait for your current plan to expire before shopping around. You can start looking at any time, which means you’ll be prepared as soon as your expiration comes and won’t have to make any rash decisions if you’re worried that your coverage will lapse.
What Might Have Changed to Lower Your Rates?
It might not even be a change in the market that could lead to a lowering of your rates. Your situation might have changed, and you could be missing out on significant savings. An insurance provider isn’t going to tell you that you could have a lower rate necessarily.
For instance, if you move, you could be in line for better insurance premiums. Your rate is partially based on where you live. The type of weather, the number of other vehicles in the area, and the level of threat for vehicle theft all contribute to what an insurance company might charge you. If you move somewhere that lessens the risk based on these or other factors, then you could get a better deal.
Your Car Isn’t Worth as Much Anymore
Insurance is partially used for protecting yourself against damage to your vehicle. The old saying goes that your car starts losing value the second you drive it off the dealer’s lot. That depreciation doesn’t stop as time goes on. Every year that goes by, your car becomes less and less valuable. While your current insurance company probably won’t give you a discount for that, another insurance company most likely will. They will base their initial estimate on what your car is worth right now, as opposed to what it might have been when you bought it or when you first got insurance for it.
Your Driving Habits Have Changed
Maybe you’ve started working from home, or you’ve decided to ride your bike more often. Whatever the reason, you might not take your vehicle on the road as much as you used to. There are a few insurance companies out there that will give better rates for those who do not drive much since their risk of an accident is lower.
There are several more reasons why your rate could lower, as well. Start shopping around for new auto insurance policies, and you could save big every year.