Guest Post: Shopping Around for Car Insurance
This is a guest post from Jayme Archer.
It is essential to shop around for auto insurance before you buy. Once you have a policy with a certain company, it never hurts to keep your eyes open for savings. Using a comparison website helps to make sure you are always getting the best auto insurance rate. Good times to compare auto insurance include:
If you’ve just gotten married
Once you are married, your insurance will factor in any driving experience of any driver listed on your policy. Your spouse must be listed on your policy, whether or not they drive your vehicle. Therefore the insurance company you are currently with may not offer you the best rate that you and your spouse might find if you shop around.
When you add a new driver to your policy
If you are adding a new driver or your teenager to your policy, it works much like when you add your spouse to your policy. You’ll need to notify your insurance company of the additional driver in your household, even if they have little or no experience. For this reason it may be helpful to shop around before settling on an insurance company. You may get a better insurance rate elsewhere than with your current company when the new driver is included on your policy.
If you’re moving
Your postal code has an affect on your insurance premium. It is used by insurance companies as one of many factors that determine what your insurance rate will be. When you move to a new neighbourhood, your premium may go up and down depending on where you are going. Make sure to compare auto insurance when you move as the insurer you are currently with may not offer you the best price for your new address.
When you’ve just purchased a new car
The type of vehicle you drive is an important factor in determining the cost of your insurance premium. While it isn’t the only factor contributing to your insurance premium, whether your car is less or more likely to be stolen, and how much it costs to repair compared to different car models will be a factor in determining how much you end up paying for your auto insurance. It might help to shop around and look for cheapest car insurance rates for certain cars before you make your vehicle purchase. The savings over time could really add up.
When your driving history changes for the worse
If you receive a driving ticket or get into an accident, your now less-than-perfect driving record will most likely affect your insurance rate. If you’ve recently been in a car accident or received a driving ticket, you might be interested to see how much rates can change if you shop around for auto insurance before deciding on an insurance company.
When your driving history changes for the better
The good news about tickets and accidents is that they usually don’t stay with you for life. As time goes on, and your record improves, your earlier accidents and tickets will not be used as a factor in determining your new insurance premium. Eventually, insurance companies will offer you better rates. Even before that time comes, you can still benefit greatly from shopping around for auto insurance.
When you receive your renewal reminder
Obviously, when you get a renewal reminder from your current insurer, you’ll want to make sure you shop around because rates go up and down and the company currently offering you the best rate, might not be offering it the next time around. Make sure you are getting the best deal.
Jayme Archer is a contributing writer at Kanetix.ca, a website offering various financial rate comparison services to Canadians from coast to coast including free car insurance rates from competing companies. Canadian drivers that are hoping to reduce their monthly insurance premiums can benefit by shopping many rates at the same time.
