subject: The Best Car Insurance Rates Go To People Who Know When To Shop [print this page] If you want the best car insurance rates possible, it's helpful to know when to shop for it. As you go through this article, you'll learn simple tips and tricks that can save you a few hundred dollars a year on your policy.
Before we begin, it's important to note that some insurance companies will charge you a cancellation fee if you switch mid-term. So if you just started or renewed your policy, call your insurer's customer service department and ask if they charge a cancellation fee. Most insurance companies don't, but it's better to be safe than sorry.
Tip #1 Get quotes at least a week before your current policy ends.
A number of insurance companies have an "Early Shopper Discount". They give this discount to people who don't wait until the last minute to shop for their new auto insurance policy.
While the length of time varies from company to company, most insurance companies that offer this discount will give it to you when you shop at least 7 days before your current policy expires. To get this discount with the most insurance companies possible, shop two weeks to a month before your current policy ends.
Tip #2 Shop when accidents and tickets fall off.
As the saying goes, accidents happen. But you shouldn't be penalized for them forever. When an insurance company is evaluating you as a risk, they will always look at your driving history before they finalize your rate. Some insurance companies look back 3 years, others look back 5. But to most insurance companies, the last 3 years are the most important.
So, if you have a ticket or an accident that is no longer on your record, it's a really good time to shop for insurance and see if you can get a lower rate.
Tip #3 Shop for your auto insurance when you buy a house.
This tip may seem a bit strange at first, but being a homeowner helps you get the best car insurance rates in a few ways.
1. Some insurance companies give better rates to homeowners,
2. You may be moving to an area that has cheaper auto rates,
3. If you have your auto and home insurance with the same company, you'll receive a multi-policy discount.
Tip #4 Shop when you graduate.
You may not agree with it, but many insurance companies reward people with diplomas. Having a high school diploma or GED helps some, but getting a Bachelor's degree usually makes the biggest difference.
Does a diploma make you a better driver? Not necessarily. The fact of the matter is that insurance is based on statistics and it's been statistically shown that people with Bachelor degrees or higher file fewer claims. Fewer claims mean higher profits for the company and in turn, lower rates for the customers.
Tip #5 Shop when you've had a change in employment.
How you use your vehicle plays a significant role in how much you have to pay for your insurance. Consider shopping for insurance if you've had any of the following changes in lifestyle.
1. You no longer commute to work. You can then say that the vehicle is being used for Pleasure, which will lower your rate.
2. You have a new job and work closer to home. In general, the closer you work to home, the lower your rate.
Tip #6 Shop when you've had insurance for six months or more.
If you've had a lapse in coverage, even if it's only a day, you will usually pay more for your insurance. But most insurance companies will only look back six months. So if you think you were penalized for a lapse in coverage, shop again when you've had continuous insurance for 6 months or more.
by: Ryan Moore
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