There are a lot of smart reasons to shop around for insurance before your policy is up for renewal. Whether your circumstances have changed or you suspect you’re overpaying, it’s wise to compare rates from other providers before you renew your existing policy.
But is it difficult to switch to another insurance company? Not really! The hardest part is finding a better rate (and Jerry
can help you with that). Then, switching is as easy as canceling your old policy and signing up for a new one. Here are the top 7 reasons to shop for insurance before your policy ends.
Reason #1: You can save a ton of money
Would you like to have more cash in your bank account? Do you have the sneaking suspicion that you might be overpaying for auto insurance? You could be right.
The average Jerry user uncovers nearly $900 in car insurance savings each year—all without sacrificing coverage.
Switching can help you pay the right price for your policy. Sure, you may love your insurance provider and maybe you’ve been with them for many years. However, you could be leaving good money on the table by allowing your devotion to interfere with smart financial decisions.
Reason #2: You could be eligible for new discounts
There are a ton of fabulous discounts for drivers. Almost every insurance company offers discounts for loyalty (long-time relationships with the company), being a safe driver (claim-free for a certain period of time), and more.
If your situation has changed since you first bought the policy, you may be able to unlock new discounts now. This works for people who wish to stay with the same company, too. There’s no harm in asking about discounts, and you have everything to gain by shopping around.
Keep in mind every company has its own system for offering discounts. You may be surprised at how much money you could save by switching to a company that offers better discounts.
Reason #3: Your life has changed in the last six months
Your insurance rate is based on many factors, sometimes including your marital status, occupation, and zip code. If you relocated, started a new career, or got married in the last six months, you could be eligible for decreased premiums.
Exercise caution, however. Some changes can trigger a slight increase in your premium. This will happen if the change in your life is correlated with greater risk. For instance, kindergarten teachers who park their cars in a school parking lot all day get very low insurance rates. On the other hand, construction workers who park their trucks near dangerous work sites can expect to pay more.
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Reason #4: You added aftermarket safety and security features
Here’s a tip you can use to your advantage: insurance companies are obsessed with safety. This is why vehicles with high safety ratings tend to get the lowest insurance rates—because they have the lowest risk.
But any vehicle can be made safer with aftermarket products. Anyone can purchase an alarm system or backup camera to help lower the risk of getting their vehicle stolen or damaged. This strategy appeals to the company’s risk aversion strategy and can help lower your insurance rate.
Reason #5: Your financial situation has changed
Your auto policy is a complex calculation that includes the amount of your deductible (your out-of-pocket costs) and the policy limit (how much the company will pay out after the deductible). You usually pay more for a policy with a higher limit.
It’s a good reason to shop for a new policy if you are now able to afford a higher limit than previously. After all, you deserve the strongest coverage possible.
If you have the means to improve your coverage, go for it! Ask your provider about increasing your limits and enjoy improved peace of mind.
Reason #6: Your coverage needs have changed
Are you concerned about having a brand new teen driver in the house? Did you recently move to a state with a high percentage of uninsured drivers? Before renewing, you may wish to add other coverages to your policy if your needs have changed.
Let’s say you need to add a new driver or boost your uninsured/underinsured motorist coverage
. Don’t make the mistake of assuming that your current company will give you the best rate! Of course, it’s always worth checking with them first—and sometimes they will offer a deal to retain your business. Reason #7: You got a ticket or a traffic-related conviction
A word of warning: experts do not recommend swapping coverage immediately after an accident. Your rate will immediately go up if you switch to another provider. If you’re still in the middle of a policy period, you can enjoy the current rate until the end of your policy period.
If it has been a few months since the incident and your policy is coming up for renewal, it is definitely worth your time to shop around.
Why? Each company has its own formula for calculating risk and issuing rates. The cheapest company before your accident may not be the cheapest after. You’ll never know unless you check around to compare rates.
MORE: How different types of car accidents affect your insurance rates
Finding affordable car insurance
We get it—you don’t want to call up a bunch of companies and beg them for a lower rate. Thankfully, this is the 21st century and you have technology on your side.
When you’re ready to start, download Jerry
. Jerry is a super app that helps you save on all your car-related costs, including car insurance. The entire shopping process with Jerry takes 60 seconds. Just your desired level of coverage and tell the app where you live. Then, review personalized quotes from top insurance companies, select your chosen policy, and voila! Jerry takes care of the rest.
Your most important job is to ensure that you don’t have a lapse in coverage. We recommend you start shopping around about two months before your policy is set to renew. You’ll need plenty of time to avoid cancellation fees, if your contract requires them. For most companies, this is 30 or 45 days.
“After signing up with Jerry
, I went from $199/month to $97/month for my car insurance. My 2019 Subaru Forester now has full coverage for a great price!” —Rhonda H.
Saved $725 annually
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