When To Switch Car Insurance

It might be easy to treat car insurance with a “set it and forget it” mentality. You know the coverage is there, so why worry about changing it or shopping for a different insurance provider? However, there are plenty of times when switching your auto coverage can lower your premiums or get you coverage that better matches your needs.

CNBC Select lists six of the most common reasons you should reconsider your insurance, and walks you through how to switch insurance if you decide it’s time for a change.

If you’ve already trimmed the fun (but pricey) discretionary spending from your budget and still need to cut down on expenses, shopping for a new auto insurance policy might be a good idea.

According to a 2022 study by ValuePenguin, 26% of policyholders save $200 or more a year after moving their coverage to a new provider. Try calling a few insurance companies and gathering quotes — you may be able to find a good deal.

For those looking for the cheapest car insurance, CNBC Select recommends Geico, which offers some of the lowest rates, as well as 16 types of discounts. Auto-Owners Insurance can be a good option if you’re looking for minimum coverage. The insurer offers highly affordable premiums, but it’s only available in 26 states.

Just be mindful that with some providers, rates can fluctuate during the policy term. You can avoid this uncertainty by going with an insurance provider like SmartMiles by Nationwide, which keeps rates fixed for the term on their pay-per-mile policies.

On the other hand, if you’re driving more, your annual mileage will be higher, which likely raises your insurance premiums. Shopping around for insurance can help you find coverage that will save you the most money.

If you’ve recently gotten married, you can add your spouse to your auto insurance policy to potentially receive a discount. Plus, insurers often require that married couples share their car insurance policies if they keep all of their cars at the same residence.

On the other hand, if you divorce your spouse you’ll both need separate policies. In most states, divorce can also cause your premiums to increase.

Further, if you have a teenager who has started driving, adding them to your policy can be pricey since they don’t have much driving experience. Luckily, some insurance providers offer discounts for young drivers. As an example, State Farm advertises a good student discount of up to 25% and a Drive Safe & Save app which can save you up to 30% and teach your teenager to drive safely.

Maybe you haven’t experienced any events that would prompt you to switch auto insurance — but it doesn’t mean you shouldn’t. If you have stuck with the same provider for years, switching might bring savings. Additionally, the more years you drive, the less risk there is of you filing a claim (according to the insurance companies), which should lower your premiums.

And if you’re getting up there in the years, you’ll find that some companies offer lower premiums to seniors, so it pays to get a few quotes.

When looking for your next car insurance provider, check ratings and reviews when gathering quotes. After all, low premiums aren’t the only priority. You want to be sure that for the money you’re paying, the insurer truly has your back.

It’s easy to stick with the same auto insurance provider and let your policy renew indefinitely. But by doing so, you might be missing out on potential savings and better coverage. Shopping for car insurance regularly can help you reduce your monthly auto expenses and ensure you always have the policy that fits your needs and circumstances.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every auto insurance article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best insurance.

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