What is a future effective date and how does it make my car insurance cheaper?

I am car shopping and the insurance agency told me that if I set up a new policy with a future effective date, I could get a discount. What does this mean?

“Some insurance companies offer a policy discount if you pay for the policy before you need the coverage to go into effect—usually between 10 and 30 days, depending on the company. If you know the date when you will be taking ownership of the new car, you can set up the policy ahead of time.
This discount can also apply at your policy renewal if you are shopping for car insurance quotes online and looking to switch insurance carriers. Check with your insurance agent to see if you qualify for this discount.
If you need help finding multiple carriers with an “”early shopper discount,”” give Jerry a try! This free app will help find all the discounts for you with up to 45 companies. “
Shannon Martin
Answered on Apr 13, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.

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