Why You Need To Shop For Insurance More Often Than You Think

Shopping for auto insurance used to be a pain. You would have to call multiple companies and go through the process of giving them your information before receiving a quote. And if you wanted to make the most of your money and save on insurance, you would need to do that a few times with different companies. These days, though, online comparison marketplaces like Otto have made this easier, allowing you to compare multiple quotes with just a few clicks.

“Why go through the trouble?” you might be wondering. “I can afford my current rate.”

But being able to afford your rate doesn’t mean you’re getting the best possible deal on your rate. Your auto insurance rate depends on things like your driving record, the make and model of your vehicle, and even where you live. It also depends on each individual company, because each company calculates its rates differently.

When should you shop for insurance?

Most people don’t think about their auto insurance until it’s time to renew their policy each year. This is why most people overpay for auto insurance.

Here’s the secret to getting the best auto insurance rate: You need to start shopping ahead of time. Not the day before your policy renews. Not a week. Give yourself at least a month to start shopping around.

“But,” you’re thinking, “With those comparison sites you mentioned, I don’t need that much time!” That’s true. Comparison shopping is easy these days, but the longer you wait to get started, the less likely you are to actually follow through on comparison shopping. In fact, about two-thirds of drivers skip this step, and may be throwing away hundreds of dollars a year by doing so.

As for the one-third of drivers who do comparison shop? On average, they’re saving $356 on their premiums.

Okay, tell me more about comparison shopping.

There’s one more secret to getting a better auto insurance rate, and it’s that you have to do it frequently. We’re not talking about logging on and comparing rates once a week, mind you. But shopping for better rates once every six months can yield savings you’ve only ever dreamed about before. Why?

Well, just think about how your life has changed over the last six months. Maybe you moved, worked on your credit score, or went through some other life change. Believe it or not, any one of these can affect how an insurance company calculates your rate. There are also a ton of invisible factors that can influence—and improve—your rates, like vehicle depreciation and old violations falling off your record.

The good news is, many providers allow drivers to sign up for a six month contract. Many also allow drivers to terminate their policy partway through, and if you pay one annual fee, receive a reimbursement for the rest of your policy.

Sure, it might seem like a lot to shop for insurance every six months, but remember—it doesn’t mean you have to switch your policy that frequently. You may find that you still have the best rate around, and you’ll sleep better knowing you’re not throwing money out the window. Plus, with online tools, you only have to sacrifice a few minutes of your day every six months to keep your rates as low as possible.