Should You Change Your Auto Insurance Policy or Insurer?

The cost of auto insurance rose over 54 percent between 2008 and 2017, according to the Insurance Information Institute. With the rising cost of insurance (and just about everything else), it's easy to understand why so many insurance customers are on the search for a new policy. Before you switch, take a look at what you need to consider about your existing policy and a potential one.

Life Events

When is the right time to switch auto insurance policies? While the obvious answer is when you find a lower rate, this isn't the only time to make a change. These common life events often necessitate a change:

• A teen driver . Did your teenager just get their license? They need insurance. With less experience and a higher risk factor, teens are often expensive to insure — especially if you are adding another car.
  
• A new car . You don't have to wait to have a 16-year-old to add a new car. Whether you're getting an extra car or replacing your old one with something new, this is the perfect time to reevaluate your policy.
  
• A move. If you're moving away from your trusted insurance agent, you may want to find a new one nearby. Instead of relying on a random customer service agent from a large agency, having your own personal agent to talk can help you to feel more comfortable with the policy.
  
• A marriage . Getting married may mean adding another car to your household. Along with changing your policy to reflect this second car, you may also have more/less money in your family budget now that you have a relationship change.
  
• A birthday . While not all birthdays can score you a rate change, turning 25 typically puts you into a lower-priced category.
  

Along with these life changes, talk to your agent about other events that may qualify you for rate changes or may require policy additions or subtractions.

Cost-Effective Changes

It's tempting to drop some of your coverage or switch to an entirely different insurer just to save some money. But this isn't always the most financially responsible option. When should you seriously consider keeping your existing policy, or at the very least, seriously evaluate your coverage? These situations and options require complete understanding and a conversation with your insurance agent:

• Deductible change . One of the easiest ways to decrease your policy premium is to raise your deductible. But in the event of an accident, you may end up paying more in the long run. Carefully evaluate how much you could potentially pay with the new deductible versus what you'd pay for repairs.
  
• Removing coverage . You have to purchase auto insurance. But you don't need every type of coverage. Sticking to the minimum insurance requirement in your state may eventually cost you more money if you get in an accident, injure someone, or damage someone else's property.
  

Unless you have detailed knowledge of different types o f auto coverage, consult an Insurance Agent for guidance. Your insurance agent can thoroughly explain parts of the policy (such as collision, comprehensive coverage, or personal injury protection)

Policy Discounts

There isn't a one-size-fits-all auto insurance policy. Along with tailoring the policy to your needs, your agent may provide options to reduce the price. While not everyone qualifies for discounts, some life events and other insurance policies (such as having multiple cars or a homeowner's policy along with auto coverage) may change your premium price.

Policy Switch

If you do decide to change your policy or your insurer, make sure to avoid a lapse in coverage. Ask your agent when the new policy will start to avoid unexpected costs. You can make sure you’re covered if you wait until your new policy starts before canceling the existing one.

Do you need new auto insurance? Contact Coast Comp Insurance Agency for more information.