If you have been renewing the same auto insurance coverage for years, there is a possibility you are overpaying your coverage. Here are some of the reasons you should request new quotes from companies like Allstar Insurance at least once each year:
Rates Change All the Time
Car insurance rates change all the time; try requesting insurance quotes in two successive months, and you are likely to get different results. Changes in weather predictions, criminal activities, and even insurance laws and regulations all affect auto insurance rates, and these things change all the time. Now, this doesn't mean that you ought to switch car insurance every month; that would be impractical, and the savings wouldn't amount to much. However, these small differences can add up to significant savings over a longer period, say six months or a year.
Your Credit Score Keeps Changing
In most states, your credit score is one of the salient factors that determine your auto insurance rates. This is because researchers have found a correlation between credit scores and the likelihood of filing auto insurance claims or getting involved in accidents. Now, your credit rating isn't static; it varies with the number of credit accounts you own, your bill payment history, your loan inquiries, and many other things. All of these are likely to change over a period of several months.
Past Infractions Fall Off Your Record
Driving or road infractions such as tickets or traffic violations are some of the biggest determinants of your auto insurance rates. However, auto insurance companies don't use your entire driving history when determining your rates -- only infractions in the recent years matter. If you have been a good driver in the recent past, then you should expect your rates to reduce when the past violations fall off your record. Of course, you can only take advantage of this when you shop for new coverage.
Lastly, you should also know that lifestyle changes also affect auto insurance rates. Examples of such lifestyle changes include getting married, buying a home, moving to another place, enrolling for school, or even getting older. The more time passes, the more you are likely to have experienced several lifestyle changes that can affect your rates. That is another reason you should shop for new coverage after some time.
As you can see, there is a real chance that you may be overpaying your insurance. Look for new quotes at the end of your current coverage period to see whether you can snag lower rates.
When you start thinking about getting insurance, it can be overwhelming to hear the advice from family and friends. While some people might encourage you to stockpile money and insure yourself, others might warn about the expense of paying for car repairs or a stay in the hospital. However, even the most conservative financial experts talk about the importance of having sound insurance. Because it can be difficult to find the right policies, I decided to create a website completely dedicated to providing free information about insurance. Every situation is different, but if you are like most people, you will need a decent homeowners, medical, auto, and life insurance policy to protect you from unforeseen circumstances.