“Smart Strategies for Lowering Your Car Insurance Costs”

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Should You Look for New Insurance Every Year?

As a consumer, loyalty often brings rewards. However, when it comes to auto insurance, sticking with the same provider year after year might not be the best financial decision. Insurance companies frequently adjust their rates, so it’s wise to shop around regularly to ensure you’re getting the best deal. Here’s when it makes sense to do so.

Annual Insurance Review

Auto insurance policies typically last six or twelve months, after which you’ll need to renew your coverage, potentially at a higher rate. In 2023, car insurance premiums increased by a staggering 20.3%, according to the Bureau of Labor Statistics. Despite rising premiums, you might still save money by switching providers. Shopping around doesn’t take much time and could save you hundreds of dollars.

Experts recommend evaluating your auto coverage and shopping for better rates at least once a year. One option is to compare rates shortly before your policy renews. You should receive a notice several weeks before your renewal date with any changes for the upcoming period, including your new premium.

You can switch insurance carriers anytime. December can be a good time to compare rates because some insurers set new rates for the upcoming year.

Life Changes That Could Prompt a Car Insurance Change

In addition to an annual review, certain life events can help you save money:

• Getting married: Married couples typically pay lower rates than single people. Many insurers offer discounts when you insure multiple vehicles with the same company.
• Buying or renting a home: Insurance companies often offer discounts when you bundle homeowners or renters insurance with auto insurance. Moving to a new city or state might also result in cheaper coverage.
• A change in employment: If you recently retired or switched to a job that allows you to work from home, you might drive fewer miles, potentially lowering your rate.
• Reaching a certain age: Auto insurance rates generally decrease as you get older, with significant drops in your 20s and 50s.
• Buying a new car: Your vehicle model affects your rate. Depending on the model of the car you’re buying and the one you’re replacing, you might get a lower rate.

Another good time to shop around is when a major violation falls off your driving record or you’ve decided to adjust your coverage amounts.

How to Shop Around for Car Insurance

Whether you’ve experienced a life event or are conducting an annual review, follow these steps to ensure you get the best rate:

• Review your coverage: Before comparing, review your current rate and coverage. If your situation and budget have changed, consider adjusting your coverage options, levels, and deductibles.
• Use a comparison tool: Obtain quotes from at least three to five insurance providers. Services like the Experian auto insurance comparison tool can provide personalized quotes from multiple insurers with a single form, saving you time and making it easier to compare options side by side.
• Look beyond the rates: Ensure you’re comparing policies with the same coverage. Some insurers may offer different types of coverage and discounts that could impact your rate, so consider those factors as well.
• Choose a provider: Based on your findings, you may decide to stick with your current insurance company or switch to a new one. If you cancel your existing policy in favor of a different provider, you might receive a partial refund from your old carrier. Align your new policy date and your cancellation date to avoid any lapse in coverage.

Improving Your Credit Can Help You Save on Auto Insurance

As you look for ways to save on car insurance, consider your credit score. In many states, auto insurers use a credit-based insurance score to help calculate your premium. Check your credit score and Experian credit report for free to evaluate your credit health. If your score is in fair or poor shape, taking steps to improve your credit can help you save on your auto insurance policy.

For any mortgage service needs, call O1ne Mortgage at 213-732-3074. We’re here to help you find the best rates and coverage options available.

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