How often should you reevaluate your car insurance?

To avoid being underinsured or overpaying hundreds of dollars to the insurance company every year, it's a good idea to evaluate your insurance policy with an independent insurance agent at least once a year. The cost of car insurance can change over time, and the policy that you thought was a bargain a few years ago might be more expensive than it should be today. We believe that asking for a new car insurance quote at least every two years is a good habit. Insurance companies rely heavily on research and statistical data to set the rates of their policies.

Since car insurance is something we all must have in order to drive, it's always beneficial to take steps to reduce costs. In addition, it's important that we all have the right coverage. To reduce costs and avoid financial hardship, individuals should reevaluate their policy at least once a year. Married drivers typically pay less for car insurance than single drivers, so be sure to tell your insurance provider about your nuptials.

In addition, if you buy a fuel-efficient car, such as a hybrid, you should be able to get a discount on your car insurance. It's usually easiest to change your car insurance company at the time your policy is renewed, but if you choose to switch in the middle of the policy, your current insurer will normally reimburse you for unused premiums, less cancellation fees. When comparing prices, be sure to check if each car insurance company offers discounts for teen drivers. You should switch your car insurance to another company when you can find a cheaper rate for the same amount of coverage without sacrificing aspects such as customer service.

An insurance agent can also help you explore possible policy options to find the best car insurance for your needs. In addition, if safety factors have changed, for example, you now park your car in a garage at night instead of on the street, or if you have recently installed anti-theft devices, contact your insurance provider. For example, the cost of car insurance for an expensive, high-performance sports car will be much higher than that of a traditional family car used to run local errands and so on. Looking for car insurance coverage annually and reevaluating your policy could result in lower insurance premiums.

It's also worth checking the prices every time there is a change in circumstances that could affect your rate, such as insuring a new car or adding a new driver. The cheapest insurer for an old car may not be the cheapest for a new car or special vehicle, since each insurer calculates rates differently. In fact, it's the perfect opportunity to review your current auto insurance policy and make sure it continues to meet your needs. Insurers generally charge lower premiums to homeowners, and you can also get a discount for multiple policies if you insure your home and car with the same company.