How Often Should I Get New Insurance Quotes?

Insurance is designed to protect you and your loved ones from financial loss related to death, illness, car accidents and much more. As a result, there are a full range of insurance products that you can purchase for maximum benefit. This includes health insurance, life insurance, car insurance, homeowner’s insurance and more. The cost of all of your various insurance premiums can add up to a hefty sum of money, and you understandably want to contain these expenses as much as possible. However, you also do not want to sacrifice valuable coverage and find yourself in a dire position of being under-insured after experiencing a devastating event. Shopping around for new coverage periodically is a great way to avoid paying more than necessary on the different types of coverage you need. However, you may be wondering how frequently you should shop for new coverage or what factors may indicate that it is time to get new quotes. By focusing on these factors, you can more easily know when it is strategically beneficial to shop around for more affordable insurance quotes.

When You Are Making a Purchase

Both home and car insurance premiums are directly tied to the asset they are insuring. For example, house insurance is priced based on the replacement cost of the home, its age, the age of its roof, the exterior composition, safety and security features in the home and more. Likewise, auto insurance is priced on the current market value of the car, the age of the car, its mileage, safety features, its horsepower and other related factors. These various factors will change depending on the type of house or car you insure, and insurance rates can likewise vary. In addition, you may also alter the type and amount of coverage you want to purchase when buying a new asset. For example, you may opt for flood insurance for your new house that you did not have with your previous policy. Because so many coverage factors will be altered when you purchase a new house or car, it makes sense to shop for the lowest rates possible when buying a new asset.

When Your Coverage Needs Change

Coverage needs for various types of policies can change over time. For example, you may have recently moved into a larger home and assumed more debt. As a result, you may realize that you need more life insurance. Life insurance proceeds can be used to pay the debt off in the event one of the spouses passes away. Another example of changing coverage needs may be when your teenager starts to drive. Adding a teen driver to an auto policy can dramatically increase rates. However, some insurance companies have far more affordable rates for teen drivers than others. By shopping around, you can find the best rates possible for all of your various policy and coverage changes.

When You Are Dissatisfied With Service or Coverage

While some people will shop around for new insurance coverage to save money, some will shop for new rates because they have had an unpleasant experience with their current provider. The unfortunate reality is that some people have issues with billing or claims processing from time to time. Some insurance providers are known for providing far more substantial and conscientious customer service than others and for having a better claims filing process than others. In some cases, individuals may have realized that their coverage does not actually meet their needs and that their current provider does not offer the most ideal type of coverage for them. If you are presently dissatisfied with your service or coverage, consider shopping for a new provider today.

When Your Credit Rating Improves

Another excellent reason to shop for new insurance rates that some people overlook relates to your credit rating. This most significantly applies to your auto insurance cost, and this is because auto insurers do review your credit rating when you apply for new coverage as well as when your policy renews. Your credit rating may have been low because of information being falsely reported to the credit reporting bureaus, and now that you have the problem fixed, you may have a substantially better credit rating. This is just one of many reasons why your credit rating may have improved significantly and that may indicate the need to shop for lower auto insurance rates.

Every Year

It is also wise to get in the habit of shopping for new rates on an annual basis for most of your coverage types. This includes for health insurance, home insurance and auto insurance, but it is not necessarily applicable for life insurance unless you have the need to purchase additional coverage. This is because life insurance rates are largely based on your age and health status. Unless your health status has improved and knocked you into a better rate class, you generally want to keep your insurance rate locked in rather than get quotes for coverage based on your current older age. Insurance providers may adjust their rating system periodically, and this means that some insurers that offered higher rates last year may now offer lower rates. Furthermore, you may qualify for different discounts now through some providers that you did not qualify for when you last shopped around for quotes. These are only a few of the many reasons why it can pay off to spend time shopping for new rates each year.

While there are many instances when individuals should shop for new coverage, the reality is that they often fail to do so. There may be many reasons for this, such as the amount of time and effort it takes to request quotes. A smart idea is to request quotes online through just a couple of the top providers available. You can also use the services of an insurance broker to save time shopping around. While you will have to exert some effort, the end result may be substantial savings in your budget in the months to come.