Sometimes it’s obvious when you need to reconsider your car insurance: like when you get a new car. Or when your policy renews with a higher monthly premium than you remember agreeing to.
But there are a few other random events that could get you a lower rate — and that’s something you definitely don’t want to pass up. If any of these have happened to you (and even if they haven’t), see if you can get the same coverage from a different insurer at a cheaper price.
If you don’t want to do the heavy lifting, try using a free website like Savvy. It will help you find the best rates in just a few seconds and could help you save an average of $826/year.
All you have to do is connect your current insurance, then Savvy will search hundreds of insurers for a better price on the same coverage. It’ll even help you cancel your old policy and get you a refund from your current insurer. Best yet: This is totally free.
If you find a better deal, you can switch right away and don’t have to wait for your next renewal or even your next payment.
So, have any of these random events affected your car insurance rate?
When Your Credit Score Goes Up
We all know a low credit score can have a negative affect on your life. It means lower chances of getting approved for credit and higher interest rates on loans. But did you know many states take your credit score into account when calculating your car insurance rates? Yikes.
So if your credit score goes up — even one point can tip you over into the “good” or “excellent” bracket — you could be looking at a cheaper car insurance policy. Keep tabs on it (don’t pay to see your score, use a free website like Credit Sesame to monitor it) and if it improves, see if you can get a better rate with a new policy.
When You Make Big Life Decisions
And you thought getting married would be worse on your finances! But as it turns out, big life decisions, like moving to a lower-crime neighborhood, buying a safer car and, yes, getting married, can make you look good to potential insurers. Once you sign on the dotted line, you could be saving big bucks every month with a new car insurance policy.
The same cannot be said in the reverse. Unfortunately, getting a divorce, buying an unsafe car or moving to a higher-crime neighborhood can increase your rates.
When Your State’s Laws Change
This event is super random, and not something the average person would think about. But states can change laws regarding insurance at any time, and it’s usually not major news (think: minimum coverages, etc.).
Unless you’re specifically seeking it out, there’s no way for you to know about these changes. That’s why it’s smart to check out new car insurance options every couple of months, just in case. You could be eligible to change your coverage and pay less for it.
Car insurance companies will always be competing for more business, and with rates super low this year, due to lower car usage, you could qualify for some of the cheapest car insurance available. So whether one of these random events happened to you or not, it’s worth seeing what better options you have.