Two Times You Should Switch Auto Insurance Companies
It's pretty common for people to change to a different auto insurance company when their previous insurer hikes up the rates. That's not the only time you should be shopping around for a new policy, though. Here are two other times jumping ship may save you a lot of money.
When Stuff Falls Off Your Driving Record
Among other things, insurance companies factor in your driving record when calculating how much to charge you for coverage. A bad driving record could have you paying a whopping 70 percent more for a policy, depending on what's recorded there.
The good news is, like credit records, incidents eventually fall off after a period of time. For instance, speeding tickets and some accidents are deleted from your record after 3 years or so, which means you aren't stuck paying exorbitant rates for auto insurance for the rest of your driving life.
Even though your insurer will drop your rate when your driving record cleans up a bit, you still want to shop around for a new policy, especially if you got those tickets and accidents while with the company. Your insurer also factors in your history with it, and it may not reduce your rate as low as it could be if you have claims on your account.
A fresh start with a new insurer may net you hundreds in savings. At minimum, your current insurer may be more willing to negotiate your rate when it realizes you're going to cancel your policy, so it doesn't hurt to get quotes from other providers.
You Purchase a Home
While purchasing a home brings a lot of responsibility, there are also many benefits to being a homeowner. One of those benefits is you can save money on your auto policy by getting it at the same company where you purchased your homeowner's insurance.
Although the discount varies between insurers, you could save anywhere from 5 to 25 percent off the premiums for each policy type.
As with anything you buy, you want to be a smart shopper. Get quotes for both individual policies and bundles and go with the cheaper of the two options. Sometimes if your auto or home insurance is very expensive due to issues, the amount a new company charges for bundling them may be far more than you'd for them individually.
For help finding the best and cheapest auto insurance policy for you, contact a local insurance company.