Why does timing matter for car insurance shopping?
Insurance rates aren't static. Insurers regularly adjust their pricing based on claims data, competition, and risk factors. At the same time, your own circumstances change in ways that affect what you pay.
Shopping at the right time means you're more likely to find rates that reflect your current situation rather than outdated information. It also gives you leverage—knowing what competitors offer helps you make informed decisions about whether to stay with your current insurer or switch.
How often should you compare rates?
Most experts suggest shopping at least once a year, typically around your renewal date. This doesn't mean you need to switch every year, but comparing options helps you understand whether you're still getting a fair rate.
When should you shop for car insurance?
Several situations signal that it's a good time to get quotes and compare your options.
At policy renewal
Your renewal date is the most convenient time to shop. You're already reviewing your policy, and switching is straightforward since there's no gap in coverage. Most policies renew every six months or annually.
After major life changes
Certain events can significantly affect your rates. These include moving to a new address, getting married or divorced, adding or removing a driver from your policy, buying or selling a vehicle, and changes in your commute or annual mileage.
When your driving record improves
Accidents and violations typically affect your rates for three to five years. Once these drop off your record, you may qualify for better rates—but your current insurer may not automatically lower your premium.
If your rates increase unexpectedly
A significant rate increase at renewal is a clear signal to shop around. While some increases reflect broader market trends, others may indicate that a competitor could offer you a better deal.
When might you wait to shop?
Not every moment is ideal for switching insurers. If you recently filed a claim, you may want to wait until it's fully resolved. Some insurers also offer loyalty discounts that build over time, so switching frequently could mean missing out on those savings.
If you're mid-policy and considering a switch, check whether your current insurer charges cancellation fees. In most cases, waiting until renewal avoids this issue.
How to shop for car insurance
- Gather your current policy documents and driving history so you can provide accurate information when requesting quotes.
- Get quotes from multiple insurers, comparing similar coverage levels to ensure an accurate comparison.
- Review each quote carefully, paying attention to coverage limits, deductibles, and any discounts applied.
- Ask about available discounts you may qualify for, such as bundling, safe driver programs, or payment-related savings.