Why Should I Shop Around for Car Insurance?

Jodie Williams
24 Jun

Who likes shopping for car insurance, raise your hand! (crickets)

Who should shop their car insurance? The answer is, everyone! 

Shopping your car insurance might not be your new favorite activity, but it could save you a lot of money. What do we mean by “shopping your insurance?” Shopping your insurance simply means checking out other insurers to make sure you’re getting the best rate. We get it, that sounds like a lot of work. But NerdWallet found drivers could save an average of $560 a year by switching insurers. And the best part is, all you have to do is contact your Origin planner and we’ll take care of the rest!

When Should You Shop Your Insurance?

Ideally, you should check your rates a month or so before the current policy expires. Insurance companies change their rates regularly so you could save money merely through a rate change. But there are a few other changes that could affect your premium.

You Move

Did you know your zip code affects your car insurance? Where your car is garaged is one factor that is considered when determining insurability. Weather, crime rates and population can increase claim volume. If you move even a few blocks away and you’re in a different zip code, it could be considered a less risky area and save you some money.

You Get Married

Married drivers are seen as safer drivers and more financially stable. Hence, they pay less for insurance. Married couples also qualify for discounts such as multi-car and bundling with other lines like homeowners.

Your Car Depreciates

Car value is another large factor in determining car insurance rates. Because cars naturally depreciate, your premium should reflect the decrease in car value. If it doesn’t cost the insurance company as much to replace your car, it shouldn’t cost you as much to insure it. For a non-luxury car, your carrier should reduce your rate around 2.5% annually. Luxury cars depreciate more quickly, and the rate should be discounted around 5% a year. Set a reminder on your calendar annually to check in with your carrier. 

You Had A Violation More Than Three Years Ago

Everyone knows driving violations (even one) can raise your car insurance premium. Make sure you know how long violations stay on your driving record. Different insurers use different time periods (generally 3-5 years) when counting violations, so it’s worth checking other carriers to see if your ticket(s) have fallen off.

Your Drive Less

Mileage driven is a big factor when determining insurance premiums. The more you drive, the greater the chance of a claim. Likewise, the less you drive, the less risk you pose to the insurance carrier. If your commute has been affected (or eliminated) by recent events, your insurance premium will decrease. You can learn more about how insurance companies can use telematics to get your mileage number as accurately as possible in this article.

The bottom line is it can really only help to check around. You could be saving a little (or a lot)- you have nothing to lose! When it comes to saving, we always want to find ways to easily cut your expenses, especially the fixed expenses. Car insurance is a requirement but the cost of it can vary if you don’t forget to shop around. Contact your Origin planner for more information!