Have considered if there is a good time to purchase car insurance? Buying insurance is quite different from buying physical goods such as clothes and furniture.
With insurance, timing is everything since car insurance rarely goes on sale. Additionally, there are no magic months when car insurance rates dip compared to other months.
The best possible time to buy your car insurance is determined by factors such as the current policy and the reason why you want to switch to another policy.
For the record, the best time to switch insurance is at the scheduled date of renewal of the current policy.
The car insurance provider will normally send renewal paperwork 30 to 45 days before the actual renewal date.
Following the receipt of the renewal paperwork that usually carries the future rates, you can compare the rates to other car insurance providers.
If there are major changes to your insurance rates, it is recommended that you contact your insurance agent or find another insurance provider.
Look around to compare how the renewal rates differ from other insurers.
The benefits of shopping for car insurance before the renewal date of the current policy are:
- You have the recent copy of the declarations page. The declarations page carries a lot of significance since it verifies your current coverage and shows proof of having had car insurance.
Proof of prior insurance coverage is required if you want to get a preferred insurance rate. With the declarations page, you can make an accurate comparison between your current coverage and the quotes you receive from potential car insurance providers.
The declarations page contains details about your coverage limits, deductibles, premiums, and other information.
If the declarations page and other renewal paperwork have not been mailed to you, ask your insurance agent to get you a current copy.
- You have the opportunity to make a clean break from your current policy and the insurance company by switching at renewal to another insurance provider.
That means you do not have to chase your agent or insurer to have your premium reimbursed. Nobody should owe anyone money to the other especially if changes have not been recently made to the policy.
- You probably will get a discount by shopping ahead of the renewal date. It is common for Surex to offer an advance quote discount as a reward to clients who choose to shop way ahead of time.
The discounts may be pegged on how far out you are from the renewal date at the time of purchasing insurance.
Shopping in advance of the renewal date portrays you as a responsible client which adds to your attractiveness to the insurance company.
Renewal times are the ideal time to shop for car insurance. Do you recall that message that hits your inbox about a month out from the renewal date notifying you of the last payment and maturing of the policy?
That’s the signal you need to start shopping for a new car insurance policy or new insurance provider.
Keep in mind that you can switch your car insurance at any time. You should not be stuck with an agent who is not responsive to your calls when in need of clarifications or help.
A good insurance agent should be a phone call away and ever ready to respond to any questions or requests. You should also not be stuck with an insurer who you think is expensive.
There’s no wrong time to switch car insurance providers or to even purchase a new car insurance policy.
However, it is possible to save some money and even avoid penalties if you get the timing right. You will not incur a penalty where you have held an insurance policy for a few months and now opt to switch midterm.
Ensure that any policy you buy has clearly stated the fees levied for early termination. That way you will get a refund for any unused premiums within a few weeks of cancellation.
Other times when you need to switch car insurance include after a personal financial assessment where you may need to reduce your expenses, after a big life change such as marriage, and when buying a new car and you need to increase coverage.
The following are some guidelines that you follow that will help in shopping and securing car insurance midterm.
- Stay up to date with all car insurance payments with your current insurance provider. Remember that you will be responsible for the days you were insured but fell behind with your payments and canceled the policy.
Keeping your payments current will help make the transition smoother. It is often a big hassle to get in your last payment to your insurance provider after cancellation as it may be overlooked or directed to other accounts.
- Carefully choose your payment date. One advantage of switching your insurance provider midterm is the opportunity to choose the day of the month you’d like your payments to be due.
Typically, insurance companies set your due date as the date of making the purchase. Compare and shop for a new policy at least a week in advance of the date you would like to start making your new payments.
Therefore, if you buy your new policy on the fifth of the month, your new due date will be the fifth.
With some insurance providers, it is possible to change the payment date to a more favorable date.
When switching insurance providers and policies, you have the opportunity to preselect your payment date and start paying your premiums at that selected time.
Finally, most car insurance policy terms are either 6-months or 12-months long. Having such a short term allows insurance providers to raise your rates as soon as an accident occurs or after settling a claim.
However, it also offers you the opportunity to shop for better and affordable car insurance coverage and negotiate for lower premiums.