How Often Should You Shop Around for a Better Auto Insurance Rate?

Auto insurance rates can fluctuate based on market conditions, company pricing strategies and changes in your driving profile. Even if your driving habits haven’t changed, insurers can raise their rates based on broader trends or internal data.

Setting a reminder to review your auto insurance annually can help you stay on top of your expenses. Treat it like a financial checkup. Just as you might review your budget or retirement contributions, evaluating your insurance rate should be part of your routine.

Beyond the annual check-in, there are specific life events that should prompt a review of your auto insurance:

• Moving to a new location: Zip codes play a major role in determining rates. A change in address could significantly affect what you pay.

• Buying a new vehicle: Whether you’re buying a brand-new or used car, updating your policy and comparing quotes can help you find a better fit.

• Changes in driving habits: If you’re driving less due to remote work or lifestyle changes, your rate might be eligible for adjustment.

• Adding or removing drivers: Teen drivers, spouses or roommates can affect your premium. Shopping around can help you find a company that offers competitive rates for your household.

• Credit score improvements: In many states, insurers use credit-based insurance scores. If your credit has improved, you might qualify for a lower rate.

Loyalty vs. Savings

Staying with the same insurer can sometimes lead to discounts, but it doesn’t always mean you’re getting the best deal. Some companies offer competitive rates to new customers while gradually increasing premiums for long-term policyholders. This practice, often called price optimization, rewards shopping behavior.

By comparing quotes from multiple insurers, you can see how your current rate stacks up. Even if you decide to stay with your existing provider, having that information gives you leverage to negotiate or adjust your coverage.

Contact Us

Contact Rate Crushers Insurance Brokers today to explore your auto insurance options and see how your current rate compares.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.