With instant quotes and online comparison shopping tools, the Internet has made it easier to compare your current auto insurance with other offerings. This makes shopping around for a new provider one of the best ways to save money on your auto insurance. If you're wondering when's the best time to shop around for better rates, read on to find out.
You've Experienced Changes in Your Lifestyle
Have you recently gotten married, moved to a new city or graduated with a bachelor's or master's degree? Then it's definitely time to reassess your auto insurance rates. Various changes in lifestyle, including positive changes like the ones just mentioned, can have a tremendous impact on your insurance rates.
Other lifestyle changes that often result in lower insurance rates include going older, especially if you've just turned 25 years of age. Once you've hit that milestone, you can expect your insurance rates to decrease with each passing year until you reach your 60s.
You've Recently Cleaned Up Your Credit History
A spotty credit history can be a hindrance when it comes to getting good auto insurance rates. That's because many insurance companies correlate credit score with accident risk and subsequent likelihood of active claims. Simply put, the lower your credit score, the greater your chances of filing a claim for an accident.
Drivers with poor credit often pay higher rates than those with better credit scores. By cleaning up your credit, you'll be able to benefit from lower rates afforded to those with good to excellent credit. Of course, you won't have to worry about this if you live in California, Hawaii or Massachusetts, since these states don't allow auto insurers to factor credit scores into their rates.
Those Old Traffic Violations Fell Off Your Driving Record
If it's been a few years since your last speeding ticket or any other moving violation, then there's a good chance it's no longer affecting your insurance rates. In most states, auto insurance providers can only factor in traffic violations that have occurred within the past 3 to 5 years.
Keeping your driving record squeaky-clean for years after a traffic violation gives you a better opportunity to find better rates, especially when you move from one auto insurance company to another.
Rates Often Vary Among Auto Insurance Providers
Auto insurance rates can vary from one provider to another for various reasons outside of the ones described above. Not every provider factors common insurance risks the same way, for instance, which often results in one provider having lower or higher rates than the other. In some cases, the differences can be hundreds of dollars depending on the type and amount of coverage you choose.
By shopping around, you can take advantage of these variations in insurance rate pricing and save money on your auto insurance coverage in the process.
Do you remember the last time you experienced an accident or an injury? Life can surprise you sometimes, which is why it is always smart to have a few life insurance policies in place. I used to think about everything that I had and everything that I could lose, and it occurred to me that I couldn't risk taking any chances. I wanted to begin this blog to share my perspective with other people, so that you don't have to worry about finding the right insurance company. Read more here to figure out what you need to do to choose a better plan.