Setting and forgetting your insurance policy may be costing you more than it should.
Everything seems to be just a little bit easier to do these days. You can order a package to be delivered to your doorstep by the next day, speak to the television to change channels, and send messages in an instant. So, it's no wonder convenience calls your name.
It's no different when you review your car insurance policy. It is easy to check the auto-renew box and keep on paying your premiums. Yet, even small changes to your driving history, your living situation, or the vehicle you drive can contribute to the insurance premium you'll pay.
By checking the box to auto-renew your insurance policy you may be skipping the opportunity to compare quotes. There are many factors that make up your rate and every year they change. The insurance provider who offered you the ideal rate last year may not be offering the lowest rate this year. So, this convenient option may actually be costing you money.
It is a good idea to compare rates at least one month prior to renewal. But you aren't limited to your insurance anniversary. Whether it's getting married or moving, life changes can affect your insurance premiums.
Getting Married
Living with your significant other or getting married can change your insurance rates, especially if your partner has a poor driving history. Many insurance providers offer a multi-vehicle discount to customers with more than one vehicle listed on a policy. However, your current insurance provider may not offer you the lowest rate for your new circumstances. Shopping around can ensure you find the best rate.
Moving Away
Moving to a new town or city can influence your insurance rate in more ways than one.
- Your address: Your insurance premium may be affected by the population density of the area. Claims costs are typically higher in urban areas, with more risk of accidents and thefts. This generally means higher premiums. However, the opposite could be said about rural areas.
- Driving distance: Moving to a new location may decrease the number of kilometres it takes to get to work. If your regular commute is shorter, you lower your risk of getting into an accident. This would also apply to those choosing to take transit more frequently, or retirees who get to skip the commute altogether.
Adding a Young Driver to Your Policy
You may have loads of experience behind the wheel, but your teenager most likely won't. Therefore, adding a young driver to your insurance policy may increase your premiums. However, some insurance providers are more friendly to young drivers than others, so you may be able to find a better rate.
Buying a New Vehicle
Every year new cars are gaining added features and technology more advanced than the models before. But more gadgets and luxuries typically indicate a higher value and replacement cost. Considering this, your insurance provider may charge more to insure your vehicle. So, it is a good idea to compare auto insurance quotes, to get the best coverage at the best price.
You may also consider adding collision and comprehensive coverage to your policy if you didn't have it before. These coverages will ensure your car is protected from theft, vandalism, hail and a variety of accidents. As your vehicle ages and loses its value, you can consider whether or not you still need the added coverage.
Compare Auto Insurance Rates
Do yourself a favour and compare auto insurance quotes before you renew. Although you are entitled to switch insurance companies at any time, you may have to pay a penalty if you choose to leave before your contract is up. So, before you get hooked back in by your auto-renewal, compare quotes at Kaentix.ca.
You can compare auto insurance quotes from over 50 companies so you can find the lowest rate.
