A recent NerdWallet study revealed that drivers in the United States are over-paying to insure their vehicles by an average of $368.00 each year . This is mainly due to people not shopping around to find the lowest possible car insurance rate. Because auto insurance is mandatory in all states, it just makes sense to compare auto insurance coverage.
The following is a list of 4 reasons to re-shop your auto insurance coverage:
1. Insurance Company Raises Your Insurance Rates: There are cases where an insurance company will increase their insurance rates for all of their policyholders, including those with good driving records. There are also cases where a driver has an incident such as a traffic violation resulting in the insurance company raising rates. Today, many insurance companies check motor vehicle records every 12 or 18 months so if you get a traffic violation like a speeding ticket, you could see an increase in your rates. Some insurance providers do not care that much about one speeding ticket but others do. If your current insurance company suddenly raises your rates, it is well worth shopping around to see if you can get a better insurance rate from another insurance company.
2. Location Is Everything: Where you live will affect your auto insurance rates. For instance, it can be more expensive insuring a car in a city than in a rural area. If you move and your zip code changes, you might discover that in your new ZIP code, there are lower insurance rates available.
3. Your Teenager Becomes A Driver: Because research has shown that teenagers are a high risk of getting in car accidents, a new teenage driver will increase auto insurance rates. According to insurance.com, rates can increase by 58%. For this reason, it pays to shop around when you have a teenage driver. As well, you will more often than not get a better rate if you keep your teen on your auto insurance policy.Your teen may also be able to get an insurance discount such a safe-driver discount for completing a safe drivers program as well as a discount for maintaining a grade point average of 3.0 or higher.
4. Purchase A New Vehicle: Auto insurance costs can vary when buying a new car. Much has to do with the particular vehicle’s theft record and safety record. Compare premiums for your preferred make and model to see if you can get a lower rate, and check out which cars are the most expensive and the least expensive to insure.
When you re-shop your auto insurance rates, try an insurance comparison website which will allow you to use an an auto insurance comparison tool to compare several insurance quotes at one time. And don’t forget to find out the types of discounts available. Many insurance experts recommend that consumers re-shop their auto insurance once a year to see if they can get a policy that has lower rates.