The Importance of Shopping Your Auto Insurance Policy



A lot can happen in 6 months. You might not think of it, but you should really be shopping around for car insurance quotes every 6 months. By neglecting to do so, you could be losing out on hundreds of dollars. According to JD Power, only about one-third of policyholders shop around each year. The one-third who do shop around, however, end up saving an average of $356 per year. Even when it feels easy to stay complacent with one insurance company, you’re doing yourself a disservice by not shopping around. Here are several reasons you should be looking at car insurance quotes every 6 months:

You Have At Least 6 Months Of Continuous Coverage

The longer and more consistent your coverage is, the better rate you’ll get. You might be able to get a lower premium with another company.

Your Vehicle Depreciates

Car insurance rates are heavily based upon the car’s value, so ask yourself: Has your carrier adjusted your premiums based on your car’s annual depreciation? So if your rates haven’t budged in a few years, remember to ask your carrier how much they account for depreciation on your rate. Try to get an exact percentage. You can then use it as a bargaining chip when negotiating rates with other carriers.

You Moved

Consumers in areas with frequent inclement weather, vehicle theft, or simply lots of other drivers, are more likely to file a claim and thus warrant higher rates. Carriers see areas dense with consumers as higher risk, since among other reasons, a single inclement weather event can cause a high volume of claims from that one area. If you initially purchased a premium in a “risky” area, and moved to a less risky one with fewer drivers/thefts/acts of nature, that’s another powerful bargaining chip for a cheaper rate.

You Might Get A Better Deal

Given the competitive insurance industry environment, and with variables ever-changing, it never hurts to compare rates and policies. You might find lower cost and/or better coverage with another carrier, so it pays to shop.

If it’s been at least 6 months since you’ve shopped around for car insurance, Horizons Insurance & Financial Services can assist you. Call (954) 862-1735 today or complete our online request form, and we’ll be happy to help!