Buy Cheaper Car Insurance Every Six Months
Since the start of the pandemic, 53% of millennials have tried to save money on auto insurance, according to a recent survey by the insurer Clearcover. It makes sense – people are in financial distress, and with fewer drivers on the roads, insurers have responded by lowering rates and offering discounts. But regular shopping is always a good idea – not just during a pandemic.
Shop every six months
A 2016 study by JD Power found that customers who upgrade save an average of $ 356 per year on their car insurance. And unlike other forms of insurance, it’s easier to look closely: the formulas that insurers use to set premiums change frequently, and most insurance companies allow you to cancel your auto insurance with no problem (provided you provide proper notice). Plus, as we all know all too well, life changes quickly. Life events such as getting married or graduating from college can actually improve your rates, which is another reason to shop frequently (with one caveat: always give your current insurer the opportunity to match a potential offer before you decide to switch).
Life events that can improve your insurance rate
Your track record is improving
Tickets and traffic violations may have dropped off your driving record since the last time you looked at auto insurance. The number of years that insurers will return to your driving history varies by company and state, but if the violation or accident drops off your DMV record, it will likely improve your rate.
You don’t drive that much
Many insurance companies offer discounts on low-mileage vehicles, which are generally considered to be drivers driving less than 7,500 miles per year. One US News & Report study found that GEICO insurers saved $ 158 a year while driving dropped from 12,000 to 6,000 miles.
Your car is always getting cheaper
The cost of auto insurance is reduced by an average of 3.4% every year for your vehicle, according to the company compared to The Zebra. However, insurance companies will be happy to charge you the same rate for many years if you don’t make a purchase.
You’ve had six months of continuous coverage
Insurance companies love to look at your driving records to see if there have been any violations or claims. If your data is clean and consistent, they are more likely to consider you a low-risk driver.
You moved
Your zip code matters. Moving to an area with less traffic and less crime can have a positive effect on your rates. And if you move to another state, you will in any case need a new insurance policy , because policy rules differ from state to state.
You graduated from college
According to a 2013 study by the Consumer Federation of America , college graduates can get a 15 percent discount, while college graduates are eligible for a 17 percent discount.
You married
Married drivers are charged a lower rate because they are considered financially stable and risk averse. According to the Value Penguin, single drivers tended to pay $ 110 more for full-coverage auto insurance per year compared to married drivers in the ten largest U.S. states.