When should I look for new car insurance coverage?

When you should look for new auto insurance coverage depends on how pleased you are with your provider and your rates. If you’re unable to take advantage of benefits and discounts, then you may need to move on. If your car insurance company punishes you for wanting to modify your coverage, you should look for new car insurance coverage. Enter your ZIP code below to start comparing new rates today.

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Tonya Sisler has a Bachelor’s Degree from the University of South Carolina in Journalism and has worked for 15+ years in management. She has also completed a proofreading certification and is currently a professional writer.

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Brad Larson has been in the insurance industry for more than a dozen years. He started out as a claims adjuster for a national carrier. He has since switched to the agency side of the business. Brad is licensed in all P&C lines.

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Reviewed by Brad Larsen
Licensed Auto Insurance Agent

UPDATED: Jun 4, 2021

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Remaining with a car insurance company for a long period of time can mean that people will be rewarded for their loyalty. Most of the time the customers that stay with the same companies have the best and cheapest car insurance coverage. Some car insurance companies give their clients discounts for being with the company for several years.

Others will decrease their clients’ deductibles each year. Every year that a client goes without having an accident, they can see a good driver reduction in their rates. See your FREE car insurance comparison by entering in your ZIP code!

Maintaining a car insurance policy for a long time can have its advantages, but if car insurance clients are unable to take advantage of those benefits, they may need to move on. If they need to seek a change in their coverage and their car insurance companies punish them for it, they also have reason to seek coverage from another company.

Seeking new car insurance coverage does not necessarily mean that people have to purchase a new policy, but looking to see what is out there for them may be in their best interests.

Four Weeks Before the Current Policy Expires

When people are dissatisfied with their car insurance coverage, they can take the opportunity to seek a new policy about four weeks before their current policies expire. This gives them plenty of time to find the coverage they need with a new company and not risk allowing their current policies to expire.

If a policy expires before drivers have a new one lined up, they will be in a precarious situation. One of the most dangerous groups of people for car insurance companies to insure is the group that is willing to drive without car insurance. These people are so dangerous because they are taking several huge risks by driving without insurance.

When car insurance companies discover that someone seeking a policy from them has driven without car insurance, they will charge very high rates. This would be the reason that people who want to switch their policies must remember to find new coverage before their current coverage ceases.

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After the Current Car Insurance Company Refuses to Lower Rates

If the policy is not set to expire in the near future but the rates are just too high, drivers can seek quotes from other car insurance companies to find a lower rate.

Car insurance companies may charge their customers a fee for cancelling early, so these clients’ first priority may be to remain with their companies. Showing their current car insurance companies all of the low offers they receive may help them to convince their companies to lower their rates.

The tactic of showing the competitions’ lower offers may not work, so these customers must be prepared to seek new car insurance coverage elsewhere. If they have to pay a fee to cancel the policy, it may be worth it if they are going to be paying a much lower price for their car insurance coverage with a new company.

When it is Time to Add a Teenager to the Policy

In order for their teenagers to learn to drive, parents must have car insurance coverage for them. Adding teenagers to a policy can be expensive because they are the newest drivers on the roads. Drivers who are learning or just recently received their licenses are more likely to be involved in car collisions than their parents are.

Another problem with adding teenagers to the policy is that the boys are known for taking more risks than anyone when they are behind the wheel. Therefore, parents find that when they add teenagers to their policies that the rates increase to a point where they may not want to pay them. This would be a good time to see if another car insurance company has a better rate.

When Increasing Coverage

When people need to increase their coverage, their car insurance companies may want to raise the premiums to a rate that they cannot afford. Times when an increase in coverage is warranted may be when:

  • The policy holder purchases a new vehicle
  • The policy holder decides that optional coverage is now necessary
  • The policy holder is adding new people to the policy
  • The policy holder decides to increase the amount of liability coverage

As people are set to add coverage to their policies and they discover that they are unimpressed with the amount their current companies will charge them, they can take the time to ask what other car insurance companies can offer them for their extra coverage.

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To Take Advantage of Discounts

If people’s current car insurance companies do not give their customers a chance to lower their rates with several different types of discounts, these car insurance clients may need to seek new car insurance coverage. Currently, several car insurance companies are offering many discounts, such as:

  • The good student discount
  • The low-mileage discount
  • The safe driver discount
  • The senior discount
  • The marriage discount
  • The multi-policy discount
  • The multi-car discount
  • The safety features discount

If drivers can qualify for several of these discounts, they should be able to lower their rates a significant amount. A car insurance company that does not allow its customers to do this will be in danger of losing its clients in large numbers.

Before Entering a Riskier Demographic

After people gain driving experience, they begin to notice that car insurance companies begin to charge them lower rates. As they continue to grow older, the opposite begins to occur, and they may witness an increase in rates at around age 65 and up. Those who are age 64 may ask their car insurance agents if their rates are about to be raised. If so, they may want to look for some new coverage.

Those who enter the riskiest demographic for car insurance companies to insure are those who have just been arrested on a DUI/DWI charge. If the car insurance company does not have the capacity to insure these customers, the policy will be cancelled. These are people who cannot afford to drive without car insurance if their driving privileges are not being suspended, so they will need to seek coverage from another company.

Those arrested on a DUI/DWI charge whose coverage is not going to be cancelled will definitely receive a letter in the mail from their companies telling them that they will have a large increase in their rates, sometimes by four times the previous amount. People in this position will be charged higher rates by most insurance companies, but some companies specialize in this type of insurance and they can offer it for more reasonable rates than other companies.

How to Compare the Rates from Other Companies

As people determine that it is time for them to seek coverage from another company, they will be able to do so without any amount of planning. They may discover that other car insurance companies have the means to charge them much lower rates for extra coverage, when they add a teenager or after they have received a DUI. It doesn’t even take very long. They can do it right at this very moment because this website has a comparison feature that they can use for FREE!

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