Break free of high auto insurance premiums by shopping around for a better price before renewing.
In the world of car insurance, the best time of year for drivers is renewal time. It’s the time of year when you can easily switch auto insurance providers, for any reason. Yet many drivers allow their policy to auto renew, which may seem convenient at the time but can end up being a costly mistake.
Don’t auto renew out of habit
As habits go, letting your car insurance policy auto renew may seem minor. However, auto renewing without ensuring you’re getting the best deal possible, can have a major affect on the fitness of your bank account. You could end up spending hundreds of dollars extra for your coverage each year. But how is this possible when your current insurer offered you the best rate last time around? Well, a lot can happen in the span of a year that can affect your rates, and renewal time is the ideal time to see if another insurer is a better match for you and your budget.
- Your insurer’s rates changed
Every insurer, including your current insurer, regularly reviews the premiums they charge and adjusts their rates based on their claims experience with the group of drivers they cover. As a result, premiums often change and the only way to know if your insurer’s rates are still the most competitive is to put their renewal rates to the test by shopping around.
- You got married or moved in together
Until now, your own driving and insurance history went into your auto insurance rate. With another driver in the house, you may find that the company that provided you the best rate as a single person may not be the same insurer that gives you the best rate as a couple.
- You moved to a new neighbourhood or city
Your address factors into what you pay for coverage, and if you moved in the last year, you’ll want to make sure you’re still getting the best deal at your new address. Each insurer assesses the perceived likelihood of collisions, theft or vandalism in your new neighbourhood differently, which means there’s a chance you can overpay for your coverage if you don’t comparison shop your rates at renewal.
- You bought a new car
The vehicle you park in your driveway is another factor in calculating your car insurance rate, in part due to theft rates. If you switched to a new vehicle you may find it’s time to switch insurers too as some might find your new car too “hot” to handle.
- Your teen is licensed now
Some insurers are more teen-friendly than others, and if you have a new driver in your household it’s worth checking to see if another insurer will give you a better rate when your policy comes up for renewal.
- You got a ticket or were involved in an at-fault accident
Accidents and tickets happen to even the best drivers, but some insurance companies are more forgiving than others.
- You changed jobs or retired
The daily commute to work is an everyday reality and when the amount of time you spend in the car commuting changes, your insurance could change as well. By spending less time behind the wheel, you may find you could spend less on your coverage with a different insurer.
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