If you do not shop around for car insurance every year, you could be losing out on significant savings. Did you know that you can save hundreds of dollars by having your auto insurance provider reassess your current rate?
This reassessment may happen due to your marital status, current location, driving record, depreciation, and more. Many insurance providers thrive on client complacency.
This is because most people are happy to remain with the same provider for years, even as their premiums remain stagnant. You can find the cheapest insurance according to Motor1.com by shopping around for car insurance quotes.
Are you getting the best deal on car insurance?
Only a small percentage of car owners shop around for car insurance each year. The best way to determine whether you are getting the best deal is by shopping around for new insurance providers and rates each year. Auto insurance providers regularly adjust their rates. Therefore, shopping around every year can help you become savvier and save you money.
Importance of Shopping Around for Car Insurance
You need to understand that car insurance providers are open to renegotiation. Some are even willing to reassess their clients’ premiums mid-term. Furthermore, if you choose to switch carriers, competitors will offer you generous discounts and offers to win you over. Therefore, being a non-complacent car insurance consumer can save you thousands of dollars other the years.
Also, like everyone else, your finances change over time. Auto insurance rates can change as well. The insurance industry is extremely competitive. Your provider may give you the best rates this year. However, things may be different next year.
The only way you will know is to stay informed by shopping around for new auto insurance quotes. Some of the reasons why you should shop around for car insurance on an annual basis include:
The Value of Your Car Depreciates Over Time
Your car insurance premiums heavily depend on the value of your car. Does your insurance provider adjust your premiums based on the annual depreciation of your car? Unless you own one of the rare vehicles that increase in value over time, the natural depreciation of your car is a powerful bargaining chip.
You can use it to convince your provider to reduce or reassess your car insurance rates. Your carrier should account for depreciation by lowering your yearly rates by about 2.5%. This reduction should be even more for those who own luxury vehicles from brands such as Mercedes, BMW, or Lexus. This is because the value of such cars tends to depreciate faster.
Therefore, if you have been paying the same rate for several years, you should determine how your carrier accounts for depreciation. Get an exact percentage and use it as a bargaining chip if you choose to switch to another carrier.
You’ve Relocated Since You Got Insurance
There is one agreeable stereotype about the modern age. It is that people are more mobile than ever before. Many people today are more likely to reside in several cities or states before settling down in their 40s.
Many insurance carriers assess geographic areas based on overall risk. If you live in a region with frequent car thefts, inclement weather, or crazy traffic, you are more likely to file an insurance claim. Therefore, you will probably have to pay higher insurance rates.
Also, if most car owners in your area have the same insurance provider, your rate with that provider will be more expensive. Most insurers consider places dense with consumers as higher risk.
Any of these factors, such as inclement weather, can lead to a huge increase in the number of claims from that area. If you purchased car insurance in a higher-risk area and you’ve moved to a less risky area, you should shop around for cheaper car insurance.
Your Car Insurance Rate Fluctuates
Auto insurance providers do not calculate rates based on car-related factors only. A portion of their revenues covers employee compensation, marketing, and other expenses. You need to understand that such expenses fluctuate.
Therefore, to compensate for this, auto insurance companies adjust their rates as well. Each insurance provider has ever-changing expenses. This should drive home the reason why car insurance rates fluctuate and vary wildly between different carriers.
One carrier may choose to cut back on marketing costs and offer new and existing customers cheaper insurance rates. However, unless you shop around, you will never know.
A Clean Driving Record
Generally, traffic violations tend to increase insurance rates. These can affect your rates for up to three years. Did you get a DUI, speeding, or any other type of violation at any time within the last 3 years? If so, a driving violation will have an impact on your rates. You might have to pay hundreds of dollars for a speeding ticket or more than a thousand dollars for a DUI.
You need to understand that such driving violations are permanently stamped on your record. Your insurance provider has access to such records. However, if you change to a new carrier after three years of having a clean record, you have a strong bargaining chip. Otherwise, you simply need to shop around to find a better deal.
Your car insurance premiums will not reduce until your current terms come to an end. That could take months, which might mean overpaying by hundreds of dollars. If you did not have any recorded traffic violations within the past three years, call your provider to determine whether you qualify for cheaper insurance rates.
A change in marital status
You probably know that married couples get car insurance discounts. Strangely, many do not take advantage of this benefit. They simply forget to inform their carriers of their new status. If you got married after getting car insurance, you need to let your current provider know.
Alternatively, ask some of your married friends about their car insurance deals. You may get information that will help you negotiate for a significant car insurance discount. Essentially, marriage is a good reason to shop around for a better car insurance policy.
You Do Not Drive Much
Many auto insurance providers in the United States offer amazing low-mileage discounts. For example, some car insurance companies offer better rates to car owners who drive less than 10,000 miles per year. Perhaps you do not even drive close to that number of miles.
What about stay-at-home moms who only drive their cars once in a full moon? Some carriers offer a pay-per-mile plan meant for infrequent drivers. Such plans help many people make significant savings on their car insurance expenses. If your carrier does not offer better rates for infrequent drivers, you should shop around for a better option.
Bottom Line
For most people, saving hundreds or even thousands of dollars on car insurance is not easy. However, you can do it by just shopping around for the best insurance rates. You simply need to pick up your phone and call a few providers to learn more about their offers.
Your current auto insurance provider may reassess your rate based on certain factors. However, you still need to do some of the work yourself. You can easily explore many auto insurance providers and find better auto insurance deals by starting your search online.
