How Often Should You Shop for Car Insurance?

You should always shop for car insurance if your policy is about to renew, as this is a good opportunity to compare rates and switch if you find something cheaper or better than your current plan.

But we also recommend comparing car insurance rates when you move, improve your credit score, or change your policy. Comparison shopping in these situations can also yield lower premiums. Let's dig into how often you should shop for auto insurance and the steps to take when shopping around.

You can shop around for car insurance as often as you want or feel the need to; there's no limit to how regularly you can compare rates or get auto insurance quotes. That said, we recommend shopping around in the following situations.

Before renewing your policy

The period before your policy renewal is a natural time to shop around for car insurance. This is typically when you can switch policies between different car insurance companies without incurring any cancellation fees.

If you find a more affordable car insurance quote that provides the coverage you want, feel free to switch to a new policy. Just make sure you're always covered and there isn't a gap between the time your current policy expires and your new insurance kicks in.

Consider your satisfaction with your provider

Customer service experiences vary greatly between car insurance companies. It may be worth paying a bit extra if you know claims are more likely to be processed without any problems with your current company. On the flip side, you might be motivated to switch if you've been unhappy with the service you've received.

At least once every year

You have nothing to lose by comparing car insurance quotes occasionally to ensure you're always getting a good deal, and you should do this at least once per year. Many policies renew every 12 months, but if you prefer six-month auto insurance policies, you'll want to check twice a year.

Shopping for car insurance once a year can be more convenient than every few months, but it only takes a few minutes to compare rates with multiple insurers if you decide you want to see what's out there more often, especially if you use car insurance comparison sites.

Before making changes to your policy

A good time to compare car insurance rates is before adding a driver or vehicle to your policy. Depending on the situation, you may end up paying higher car insurance premiums for the changes you make. Adding a 16-year-old driver to your policy, for example, costs an extra $2,267 per year on average, according to data from Insure.com. But some companies offer better car insurance for teens than others.

A quick comparison of different car insurance providers can give you a sense of whether it makes financial sense to stay with your current company or to go with someone else.

When you move to a new place or state

Where you live is one of many factors that affect car insurance rates. So if you move to another location, it makes sense to see what coverage is available in your new area.

This is especially important if your current policy doesn't operate nationwide and you're moving to another state. Each state also has its own laws regarding minimum car insurance requirements, so you want to make sure you have the coverage you need in a new state.

Warning

Moving to a new state typically requires you to get a new insurance policy even if you stay with the same issuer.

After your credit score improves

Some auto insurance companies may check your credit report using a soft inquiry, which has no impact on your credit score. Other companies may use a credit-based insurance score.

This score check is one of many factors that can affect your car insurance rates, so having a better credit score may give you better rates. You might qualify for lower rates if you've recently improved your credit score.

5 steps to shop for auto insurance

Knowing how to get car insurance can help you save money on your coverage. There are five steps to consider if you're shopping for a new auto insurance policy.

1. Review your existing coverage

There's no one answer for how much coverage you need aside from the required state minimum car insurance where you live — apart from New Hampshire, which has no minimum. But you can review your existing coverage to see whether it meets your needs or if you need to make adjustments.

For example, you can choose the minimum liability coverage to meet your state's car insurance laws while having an affordable insurance premium. But would it be enough insurance to financially protect you in an accident? In some accidents, this coverage may not be enough.

2. Determine the new coverage you need

If you've reviewed your existing coverage and found you need to make some changes, it's time to determine how much coverage you actually need. This will typically vary depending on your situation, especially where you live.

For instance, you may consider adding comprehensive insurance to your policy if it hails frequently in your area. Comprehensive coverage could also make sense if deer or other animals frequently cross the roads you drive on.

On the other hand, you may consider removing optional coverage that you don't need. For example, you may not need original parts or rental car reimbursement coverage. This should save you money on your premium.

3. Gather the required information

Car insurance quotes can vary by company, but most insurers typically require a lot of the same information. You can gather this information before you fill out a quote to help quicken the process.

Here's some of the information you might need on hand:

Name and date of birth
Gender and marital status
Phone number and address
Driver's license number
Number of vehicles and their applicable information (make, model, year, vehicle identification number, etc.)

People you want to add to the policy
Type of coverage you want to add
Coverage limits and deductibles
Information for potential discounts, such as government or military affiliation

4. Use an auto insurance comparison tool

Once you have the information you need on hand, it's time to get some car insurance quotes and compare rates. You have a few different options for comparing rates, including checking individual insurance websites or calling an insurance agent.

But it's typically quicker and more efficient to use an auto insurance comparison tool. In general, these are websites that find car insurance rates from many or all available companies in your area using the information you provide.

So rather than getting one rate at a time from different companies, you can see some of the best rates at once in one location. Even better, the best car insurance comparison sites are typically free and easy to use. Simply plug in your information and let the tool do the rest.

5. Choose the best quote

The process of using an auto insurance comparison tool to compare rates doesn't typically take more than a few minutes if you already have the required information on hand. Once you receive your results, you can compare rates and coverage between different companies to see which provider makes the most sense for you.

Keep in mind that it's often best to compare apples to apples when analyzing car insurance coverage options. This means that quotes from separate insurers should include the same types of coverage and discounts if you want to fairly compare their rates.

For example, one car insurance rate can be cheaper than another because it has lower coverage limits or a higher deductible. But that's not a fair comparison because the limits aren't the same.

Keep an eye out for these details to make sure the quotes you're comparing are as identical as possible.

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FAQs

Should you always shop around for car insurance?

Before you buy a new insurance policy, it typically makes sense to shop around first. This is often the easiest way to find cheaper car insurance rates, and it doesn't take much time if you compare quotes online.

You can compare quotes by checking individual car insurance websites or using a car insurance comparison site that quickly gathers all available rate information in one convenient location.

Is it cheaper to buy insurance yearly or monthly?

Depending on your insurance provider, buying car insurance on a yearly or annual basis may be cheaper because some insurance companies provide discounts if you pay your premiums in full. Remember that some insurance providers may only allow you to pay up to six months' worth of premiums at a time, which could still be cheaper than paying monthly.

Bottom line

You should shop for car insurance as often as you need to, but it typically makes the most sense if you're about to renew or make changes to your policy. We also suggest comparing car insurance quotes if you recently moved or improved your credit score.

Remember that comparing car insurance rates is often the easiest way to find cheaper coverage.

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How Often Should You Shop for Car Insurance?