When Is the Right Time to Change Your Car Insurance? - 3 Things to Keep in Mind

Changing car insurance companies is an easy and cost-effective way to save money each year. It is a good idea to shop around every year or two, but it is even better to switch when your policy is due for renewal. You may be able to save hundreds of dollars each year if you switch your insurance company before your current policy expires. Here are some things to keep in mind before changing your policy:

First, take stock of your current coverage. Have you made any significant life changes? These life changes may have affected your auto insurance needs. If you have recently bought a new car, you may want to increase your collision coverage, gap insurance, or liability insurance. If you have been driving fewer than 5,000 miles a year, a pay-per-mile plan may be a good option. If you rarely drive, you may need to lower your coverage or raise your deductible.

Before choosing a new auto insurance company, make sure to review your current coverage. Are you still happy with your coverage? If not, you may want to change the limits of your current coverage, or add an umbrella policy to cover higher costs. Or, you might want to drop collision coverage altogether, depending on the value of your car. Remember to shop around before your current policy expires so you don’t have to worry about gaps in coverage when you’re making a change.

If you’re planning to switch auto insurance, it’s important to get three quotes from different companies. If you find one that is best for you, make sure to notify your lender. The new insurance company will contact your previous insurer, and they will be glad to refund the unused portion of your current policy. You can also ask for a refund if you’re not satisfied with your coverage.

Before changing car insurance companies, make sure to cancel your previous policy before it terminates. Failure to do so will leave you unprotected in case of an accident. Changing companies may cost you more money in the long run, so make sure to check carefully before switching. When is the Right Time to Change Your Car Insurance? – 3 Things to Keep in Mind

First, it’s important to understand how car insurance companies calculate rate changes. Every state varies rates and regulations, so you’re unlikely to know when a particular insurance company will change its rates. Therefore, the right time to switch car insurance is right after a life event that affects your driving record. Consider birthdays, increased credit score, removal of a violation from your record, and more.