4 Good Reasons to Shop for Auto Insurance

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Auto insurance is meant to provide protection for you in case of an accident. But, let’s be honest, with the rising cost of some policies, it seems like more of a headache than not. If you’re a first-time policy holder, you probably have a few questions. One of the main ones is, “how often should I shop for car insurance?” Most experts will tell you every six months, just to make sure you’re getting the best deals.

Below are some of the reasons why experts suggest this.

Maintained insurance coverage

As previously mentioned, car insurance can be pretty costly, especially for first-time buyers and those who’ve gone a few months without insurance. According to Yahoo News, “In fact, some companies look at drivers without coverage as being too high risk and will not offer a policy at all until that person has been insured elsewhere first.”

However, for many companies, if you maintain continuous coverage for at least six months, you’re viewed as low risk and could be eligible for discounts. Data from The Zebra’s State of Auto Insurance report shows an average savings of $100 annually after being insured for just one year, and the discount continues to improve annually.

Insurance rates fluctuate

Insurance companies often adjust their rating algorithms throughout the year to account for risk changes. This is so they can stay competitive with the market and, sometimes, it can work in your favor. Even though rates can fluctuate month to month and even day to day, these rate changes are not usually significant on a short-term basis.

Had a birthday since your policy last renewed

So, you had a birthday recently? Happy Birthday and Congratulations! As you age, companies view you as a lower risk, which means—statistically—the older you get, the lower your insurance rates are.

Additionally, since most auto insurance policy terms run for six to 12 months in length, you’ll hit a birthday at least every other term during your policy. But keep in mind, even if you are a 12-month policy holder, you can and should still shop around and switch in the middle of your policy period if you find a better rate.

Vehicle value depreciates

Here’s a new flash: the value of your vehicle is constantly decreasing. Hate to burst your bubble, but it’s true. Therefore, it’s important to reassess insurance rates regularly to keep your vehicle’s value more relevant to your rate.

At Amigo Insurance, we make sure you have the lowest rates possible and the most effective coverage level based on your needs. While we can’t offer you a health tracking device, we can do all the hard work for you. Don’t let insurance be more complicated than it needs to be. We can help you find the best plan based on specific information you disclose to us. We then use that specific information to make sure to select the best coverage centered around your needs.