Here’s how to know when to buy new car insurance quotes

This annual financial report can even include your car insurance. Does your current policy still fit your needs? Have costs gone beyond your budget? Could you get a new policy that is less elsewhere?

Making sure you’re getting the best deal for your money isn’t the only reason to look for new deals. You may also need to do this if you have experienced various life events.

When to buy new car insurance

There are some important times when you should consider requesting new Auto-Policy offerings. This includes when you move to a new location, add a new driver to the policy and when you buy a new vehicle. However, these are just a few of the occasions when it can be a good idea to explore your options.

“The auto insurance market is competitive and consumers have a lot of choices,” said Pat Callahan, president of Personal Lines at Progressive. “Because prices vary between insurers and rates change frequently, it can be beneficial for consumers to shop at least once a year.”

When you move

If you move from one state to another, your insurance policy cannot simply transfer with you. Auto insurance laws vary from state to state. Your policy and premium are based on local law and the specific coverage you are required to carry.

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 policy, as local moves can bring changes to your daily commute. Additional factors may also change and affect your policy costs, such as: B. local crime and accident rates.

“Even moving cities within the same state can affect auto insurance rates as premiums vary by zip code. Typically, metropolitan areas have a high concentration of drivers and an increased likelihood of accidents, which drives up average insurance premiums,” said Renata Balasco, insurance expert and authorized representative at insurance comparison platform The Zebra. “If you move from a major city to a smaller suburb or residential area – or vice versa – your fares may change based on 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 the likelihood of a claim is now higher, especially if you add a younger driver. This means another reason you might want to shop around and make sure you’re getting the cheapest price.

“Young drivers are the most expensive age group to insure because insurance companies see them as the least experienced on the road and most likely to be involved in accidents,” says Balasco. “If you’re looking for a new policy when you’re adding someone, you can browse through all the available discount opportunities that the new driver might qualify for. Some common examples are a good student discount, a driving class discount, or a student away from home discount.”

When you get a new car

Of course when you buy a new vehicle you want to make sure you have the right coverage. The first step is to notify your current insurance carrier, as you must do to update your coverage. This process usually results in new costs for the policy.

“The year, make and model of car you drive has a significant impact on your policy costs. Newer vehicles may have safety features that older cars lack, but parts can be more expensive to replace if damaged,” says Balasco.

If your current policy changes too much for the new vehicle, you should seek additional quotes elsewhere to find the best rate for your circumstances.

If your policy needs to change

In addition to all of the specific examples already discussed, your policy needs may evolve for other reasons. Perhaps you are now a telecommuter and have had a significant daily commute for the past several years. The amount you drive affects your insurance costs. If you drive less now, you may be able to lower the overall price of the policy.

Plus, as your car gets older, you don’t feel the need to carry as much protection as you used to. And you can also consider buying a new policy offering.

“Changing jobs, starting or finishing school, kids going to college or coming home from college are all likely to change your vehicle usage and insurance needs,” says Callahan. “So it’s worth contacting your current agent or company and possibly looking for new coverage if you’re not happy with what’s on offer.”

When the policy no longer fits into your budget

Of course, you don’t have to have gone through major life changes to start looking for new insurance deals. In some cases you may want to do this simply because your premium has increased and you need to adjust the cost to your current budget needs – especially at a time when inflation is crushing many household budgets.

“Car insurance rates go up every year, regardless of your driving profile,” says Balasco. “If your premium has grown beyond your comfort level – or if you’ve been with a particular airline for a number of years – it might be time to look around. Another insurance company may be able to offer lower rates or other discount opportunities.”

4 tips for buying insurance

When you get new quotes, remember that there are a variety of ways to reduce the cost of car insurance, but you should make sure you’re still getting all the coverage you need.

“It’s important to compare coverage to your current policy, not just price,” advises Carmella Cange, insurance manager for product design and retail experience at Liberty Mutual, US global retail markets. “Companies may offer different coverages or limits for their offering, which is often the cause of price differences. Customers should make sure they compare the cost with similar insurance terms.”

It’s also important to read the fine print of an offer, as some companies may offer pricing based on a six-month policy versus a 12-month policy to make the price appear cheaper.

Other shopping options are:

• Use online quote comparison tools: Online comparison platforms make it easy to see your coverage options and price quotes in one place. It can simplify the shopping process and save you time.
• Work with an independent insurance agency: If you work with an independent agency, they will do the comparison shopping for you.
• Bundle Guidelines: If you are looking for even more ways to save, it may also be worth bundling your insurance policies. This means you use one insurance carrier to get your home, renters, car, pet, and life insurance—or whichever of those policies you need. Bundling often gives you a discount for multiple policies while still being able to manage all your policies in one place.

take that away

Looking for new auto insurance at least once a year can save you money and customize the policy to fit your current lifestyle and budget. When soliciting new quotes, make sure you’re comparing the same level of coverage and insurance terms for price. You can also make the shopping process quicker and easier by using an insurance comparison platform or by working with an independent insurance agency to do the comparison shopping for you.