You should shop for cheaper car insurance every few months — here's why
You may be paying too much for car insurance. Here’s how to check. (iStock)
Many Americans have had to cut corners since the pandemic began — and car insurance premiums have been a good place to start. With most people logging fewer hours behind the wheel, a large swath of drivers is likely overpaying — or at least paying for coverages they no longer need.
Fortunately, it’s never too late to make a change. According to a survey from Clearcover, a whopping 53% of Millennials either reevaluated or altered their car insurance during the pandemic. And if you’re worried you may be paying too much, you can, too.
In fact, you should compare car insurance policies at least a few times per year — pandemic or not. Because rates are always in flux, not to mention dependent on many ever-changing factors, taking time to shop around is critical if you want the lowest-priced premium at all times. Credible can help you compare auto insurance companies and their coverage plans in just minutes.
6 reasons to shop around for car insurance often
How long has it been since you shopped around for car insurance? If it’s been more than a few months, here’s why you might want to pull the trigger today:
- You could qualify for a new discount
- Your driving habits changed
- Your credit score might have improved
- The costs to repair your car may have dropped
- Your location may have gotten safer
1. You could qualify for a new discount
There are dozens of discounts you can use to lower your premiums. There are safe driver discounts, which reward you for going claim-free for a certain period of time, and there are also discounts for things like being a good student, being a member in certain organizations, becoming a homeowner, bundling your insurance policies and so much more.
You’ll want to shop around often to be sure you’re taking full advantage of any discounts you might be eligible for. Want to see what discounts you might qualify for? Use Credible to explore pricing and find the most affordable auto insurance plan now.
2. Your driving habits change
A large factor in your insurance premium is how — and how often — you use your vehicle. If you were previously making two-hour roundtrip commutes each day and are now working from home, your usage has dropped considerably. It should drop your rate quite a bit, too.
Where you store the car matters, too. If pre-pandemic, it was sitting on a busy urban street or in a college campus parking lot, but now it sits safely in your garage most days, then a rate adjustment is likely in order here as well.
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3. Your credit score might have improved
Though it depends on what state you’re located in, most insurers consider your credit score when setting your car insurance rate. And the higher your score? The lower that premium will usually be.
Of course, credit scores are always changing. If you’ve recently paid off a balance, settled an overdue account, or have just been really good about making on-time payments, your score may have increased — qualifying you for a lower insurance rate in the process.
To see what car insurance quotes you qualify for, head to Credible now.
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4. The costs to repair your car may have dropped
The price of car parts plays into your premium costs as well. When parts for your vehicle get more expensive, then naturally, the insurer needs to charge more to cover you. If parts get more affordable (usually as your car gets older), then your premium should be lower, too.
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5. You’ve gotten older
Your age plays a role in your car insurance rates as well. Typically, drivers under the age of 25 (and over 65) are the riskiest, so they come with higher rates.
If you or someone on your policy has aged out of this bracket, you’re probably due a lower rate than you currently pay. To make sure you are not overpaying for car insurance, check online through Credible.
6. Your location may have gotten safer
One final piece of the puzzle is your location. While you may not have moved, it’s possible your location — more specifically your ZIP code — has gotten more affordable to insure.
This might happen when local vandalism and crime rates go down or when accidents and traffic decrease in an area. Both of these make it safer for your car and, thus, less risky to insure you. Less risk almost always equals a lower rate.
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The bottom line
It’s important to shop car insurance options often. As you can see, the cost of an auto insurance policy can vary widely, and it’s highly dependent on a number of constantly evolving factors and considerations. Comparing your options regularly can ensure you’re getting the absolute best rate possible.
Has it been a while since you shopped around for a car insurance provider? Use Credible to compare auto insurance companies and shop their rates now.