When is the right time to change auto insurance?

Ask an Agent: When is the right time to change auto insurance?

While it’s easy to assume that your auto insurance company will be there to protect your best interests at the time of an accident, I find that many motorists don’t have a clue when it comes to getting the best coverage. If you’re anything like me, you probably have renewed the same insurance coverage for the last few years.

But how do you know if that insurance policy is even relevant at this time of your life? Every renewal period, you should stop to consider that it may be time to switch to a better coverage that will best protect your needs. Or maybe it’s not the policy, maybe it’s the insurance company that just doesn’t fit your current needs.

There is nothing wrong with change. Even switching insurances can be pretty simple. All you have to do is talk to your agent about your current situation and see if you’re getting the right coverage at the right price.

How do you know it’s time for change?

The first clue that it might be time for a change is when your policy renewal date comes around, and you’ve noticed that your premiums have increased by at least 10%. While this isn’t the instant red flag to switch insurance companies, you should at least consider shopping around.

While you’re looking for a new policy, you should stop to evaluate your situation and see if anything else has changed. For instance, if you bought a car that required a $500 deductible but you have since paid the car off, you may no longer need that $500 deductible. Or perhaps, you don’t even need collision coverage for your old vehicle. You may have another vehicle that can be added to the same insurance to save money on bundling prices.

Talk to your insurance agent and see if he can adjust your coverage to best fit your current financial situation. There are many factors that can affect how your rate increases or lowers. A lot of insurance companies have discounts, if you add other types of insurances, such as life insurance. You may be eligible for other discounts, especially if you’ve recently graduated or bought a house.

Keep in mind that some insurance companies have penalties if you cancel your policy before it ends. It’s best to wait until it’s time to renew your policy to make a clean switch. Sometimes, staying with the same insurance company is not always in your best interest. Life constantly changes and your insurance coverage should too.