The 7 Times When You Should Get a New Auto Insurance Quote
The best time to get a new auto insurance quote is when a major milestone is on the horizon. Every time something significant happens in your life, it is time to check on car insurance policies because premiums change periodically and a change could affect your available discounts. Getting new insurance quotes can save you money if you get them at the right time, so take the time to shop for car insurance quotes to save yourself some money.
When you get married, it is time to contact your auto insurance company to see if the latest milestone in your life will positively impact your premiums. You can qualify for multi-car discounts if you and your spouse decide to move to the same company. Married individuals also tend to get lower rate quotes than single people, so it is worth calling just for that. Your spouse should also contact their car insurance company because that company may be better for both of you. Looking for insurance can be a team effort, and together, you can find the best rates for what you both require.
When you move to a new zip code, your insurance will change to reflect the new location. Moving to a new house in the same zip code may also affect your insurance premiums if you go into a different neighborhood. Crime rates and other relevant statistics are applied to algorithms that then return rates to you. Every company has different algorithms, so the quotes will be different no matter who you call. You will need to be honest about your address and location, too. If you do not have the correct information and you end up having an accident, you can end up nullifying your insurance because you’ll be in breach of contract.
Buying a House
Buying a house is a significant life milestone, and when you buy a new home, you will likely qualify for reduced premiums. Statistics show that homeowners tend to have fewer claims, resulting in lower insurance premiums. It is a significant difference that can be close to half of what you might pay if you rent. Buying a home is a big deal for insurance companies because it signifies commitment and a healthy credit score. When you have these things to add to your portfolio, car insurance quotes will reflect the change. As a bonus, you might also score even better deals if you bundle auto and home insurance under the same company.
Getting a New Job
The job you have can affect your insurance premiums. When you get a new job, it is a good idea to contact your insurance company to see if you can lower your premiums. Many professions are associated with more risky behavior, so your job can have a significant impact. Law enforcement, military personnel, teachers, and medical professionals enjoy some of the lowest premiums. Higher premiums can be expected for farm laborers, car valets, security guards, construction workers, and entertainers. You can tweak your title to reflect a lower rate, but you have to be careful if you do because if it veers too far off from the truth of what you do, you may face fraudulence charges.
Renewal Is Looming
Auto insurance companies typically raise rates when it is time to renew every six months to a year. Most people do not realize that this happens because it’s such a small change that most people think it’s inflation. If you can, check your historical rates on your current insurance if you have been with your company long enough for renewals to happen. If the premiums are going up, contact the company to ask why and see what they tell you. The truth is that if you shop car insurance rates when your policy is up for renewal, you might save hundreds of dollars every year. You might also find out that you qualify for discounts you did not know about, so it’s a good idea to ask about those at renewal time, too.
Getting a New Car
Any time you trade in your old car or buy a new car, you are going to qualify for a new auto insurance quote. If you can do it before you make the purchase, contact insurance companies with the car you are thinking of getting. They will give you quotes so you know what to expect when you make your purchase. Additionally, you can ask the insurance companies for a list of safety and anti-theft devices that will result in extra discounts on your premiums. You will know if you need to look for a vehicle with driver-monitoring and lane-assist for the sake of lowering your monthly fees.
Adding a New Driver
When you add a new driver to your insurance, it is crucial to get quotes from various companies before making a decision. It does not matter if it is your parents or your teenage children, but it will impact your premiums whenever you add a new driver. Teens tend to be more expensive to insure, so call different companies and compare car insurance rates for the best deal. Likewise, senior drivers can also be more expensive, so it is the same concept—call around for the best rates.
The Bottom Line
When you start getting quotes, shoot for at least three quotes and as many as five. Each one will check your credit, but some will be passive checks, and others will have a hard impact on your credit score. You want to minimize the hard checks as much as possible to protect your credit score.
Remember to contact your insurance company any time you have a major life milestone. Getting married or moving can have a tremendous impact on your premiums. Buying a house or getting a new job can also significantly improve your premiums. When you are up for renewal, it’s time to take a minute and look into other options. A new car or adding a new driver can also make a difference, so don’t just take one company’s word for it—call around for the best rates and coverage that will meet your needs.