Why You Should Shop Around for Auto Insurance

Are you loyal to your auto insurance company? Statistics say you likely are, as over 60% of drivers have been with their auto insurance company for more than 10 years. If you do fall into this category you also probably think you’re getting the best possible rate. After all, you likely have a discount based on the length of time you’ve been a customer. But does a meager discount mean you’re getting the best rate possible? We’re sharing 5 reasons why now may be a great time to kick your current carrier to the curb and shop around.

Your ticket premiums have expired.

It’s no secret that traffic violations and accidents will likely increase your insurance rates. What people may not know is that a few factors are in play that affect your rate. Namely:

• Who you insure with and how long they keep a violation on record — Two or three years is common
• The type of violation – DUIs and careless driving are the most costly, according to The Balance, as rates could hike over 70% for either one
• Where you live

Keep in mind, your driving record and auto insurance record are two different things, so you’ll need to contact your insurance company to see how they handle infractions. If your driving record has been flawless for a few years, it may be time to shop around for a better rate.

The rate may have changed since you last shopped.

Insurance companies change their rates from time to time, so even if you shopped around a couple of years ago, the companies you looked at may have lower rates now. When your carrier increases your rate, take the opportunity to shop around for auto insurance somewhere else – another carrier could have just lowered their rate. But you won’t know that unless you shop around. Some carriers may even offer lower rates for new customers, so you may save even more money by switching.

Major life changes can lead to rate changes.

Did you recently age out of your early twenties, get married, change jobs, move, or add a new driver to your policy? All of these events can impact rate changes. On one hand, adding a teenager can increase your rates because experience matters when it comes to auto insurance. On the flip side, getting a new job, getting married, or moving to a new city could drive your rate down. Any time you experience a major life change, consider shopping around for a new auto insurance policy.

Your credit score has improved.

Some insurers take your credit score into account when determining your rate, and how much your credit score affects your auto insurance rate can vary by state. If any part of your score has improved, you may be eligible for a lower auto insurance rate because it’s an indicator that you’re financially responsible. Even if your credit score has not improved but gotten worse, you may be eligible for a lower rate with a different auto insurance company than you have with your current provider.

The value of your vehicle has depreciated.

We all know that the value of most things decreases over time. Cars cost more when they’re brand new than when they’re used – it’s essentially common sense. If your car’s value has decreased, you may be eligible for a lower rate. As value depreciates, rates may follow suit. Talk to your current carrier or shop around for options from different providers to find out which works best for you.