How Often Should You Shop for Auto Insurance Quotes?

Everything is more expensive these days. Price hikes in food, gas, apartments, school tuition, and more are becoming prevalent. When the prices of necessities are high, the best thing to do is cut expenses. You can apply this to many aspects of your lifestyle, and you can apply this strategy to auto insurance too.

The key to not overspending on car insurance is to shop car insurance quotes at the right time. Because car insurance isn’t cheap, it’s always best to make sure you’re getting the best rates. Though auto insurance can be expensive, the financial security and peace of mind it brings are worth it.

Before you start collecting these quotes from insurance providers, let’s look at what an insurance quote is.

What is an Insurance Quote?

The insurance quote shows the amount of the premium you have to pay to get coverage. It is vital to get an insurance quote before signing up for any insurance policy. The quote tells you if the premium meets your budget. You can get insurance quotes online, or you can visit the offices of insurance providers. Each company has different ways of coming up with an insurance quote. These companies base their insurance rate on various factors.

To acquire an insurance quote, you need to provide your personal information, along with information such as vehicle information number, your car’s make and model, and the drivers you plan to enroll in the policy. Remember that an insurance quote is only valid for 30 days.

When Is the Right Time to Shop for Insurance Quotes?

If you ask the experts, they will tell you that it is best to shop for car insurance quotes every six months to a year. Shopping for car insurance quotes within this timeframe is a rational move since most car insurance policies usually last for this period.

Comparing insurance quotes every time you get a policy renewal is an excellent way to save money. This strategy will give you an idea of the rates of various insurance providers so that you can pick the cheapest insurance policy.

The idea is not to wait for your current insurance policy to end before you get another insurance. Don’t worry about wasting the remaining months covered in your policy because many companies offer refunds for the unused months in your insurance. Do not hesitate to ask your insurance provider for this if you are planning to cancel your current insurance.

Auto insurance experts also recommend shopping for car insurance quotes after major life events or changes that affect your rates.

Should I Shop for Insurance Quotes For Teenage Drivers?

There are several factors insurance companies consider when computing their rates. One of them is age. Companies tend to give higher rates to younger drivers because, according to studies, teenagers are more prone to accidents. As a result, most auto insurance providers offset the risk with higher insurance premiums.

So if you are asking if you should get new insurance quotes for teenage drivers on your insurance policy, the answer is not just yet. If you want to save a ton of money, you should wait until these teenage drivers turn 20. Drivers aged 19 pay an average annual insurance premium rate of $1,451 compared to $995 for people aged 20. The biggest drop in insurance premium rate usually occurs when the driver turns 25.

Should I get an Insurance Quote After I Get Into an Accident?

When you’re shopping for insurance quotes, most auto insurance providers look into your driving record. This is to assess if you are a good driver and if they will be spending more money on you. Drivers with a current history of at-fault accidents, violations, tickets, and other driving violations should wait three years before getting an insurance quote.

People with a current history of at-fault accidents may see an increase of up to $1,157 on their premiums.

Is it Okay to Shop for Insurance Quotes After a Natural Disaster Takes Place?

This question may seem odd, but natural disasters like fire and hurricanes can affect companies’ rates. Your personal information and driving history are not the only factors companies use in computing your insurance premiums. These companies also take into consideration their assets.

When a calamity hits a city, the insurance company needs to spend more money since many people will file claims on their insurance policies. This means that the insurance provider’s assets will likely take a hit. To recover from this loss, insurance companies will increase their rates.

How to Shop for Insurance Quotes

There are two ways to get quotes from insurance providers: through email and by visiting the insurance provider’s locations. Before you can finally get a copy of your insurance quotes, you need to follow two easy steps.

  1. Provide the necessary information. In most cases, the insurance provider will ask you to fill out a form and provide your personal information and details on your car.
  2. Choose the insurance coverage you want. You may be tempted to just pick the cheapest insurance available, but keep in mind that certain states require specific types of insurance coverage.

Once you have provided the necessary information and decided which coverage works for you, you can now get your quote and compare rates.

In a Nutshell

Shopping for insurance quotes is a vital part of getting insurance. Doing so can help you compare the rates from various insurance companies. Having this information will also help you decide which company works best for your budget.

John Otero

John Otero

John Otero is an industry practitioner with more than 15 years of experience in the insurance industry. He has held various senior management roles both in the insurance companies and insurance brokers during this span of time. He began his insurance career in 2004 as an office assistant at an agency in her hometown of Duluth, MN. He got licensed as a producer while working at that agency and progressed to serve as an office manager. Working in the agency is how he fell in love with the industry. He saw firsthand the good that insurance consumers experienced by having the proper protection. John has diverse experience in corporate & consumer insurance services, across a range of vocations. His specialties include Major Corporate risk management and insurance programs, and Financial Lines He has been instrumental in making his firm as one of the leading organizations in the country in generating sustainable rapid growth of the company while maintaining service excellence to clients.