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How Far Ahead Should You Buy Car Insurance?

If you are looking to get the best car insurance deal, then timing is everything. This is because car insurance does not have an open period for enrollment; nonetheless, this is not like retail shopping where you would expect last-minute deals and sales.

When is the best time for car insurance shopping?

The perfect timing for insurance is reliant on the current policy and the reasons for switching. The scheduled date for policy renewal is a good time to start insurance shopping. 

The paperwork will arrive in the mail around 45 days before the actual date. This means you have an opportunity to compare the future rates with those of other carriers. 

Ideally, make sure all paperwork is in order at least a week before you change insurers.

Early shopping can save you money through early – bird discounts.

If the change is rather substantial, it is an indication that it is time to call your agent, or even start considering a different carrier. Do a little insurance window shopping and compare how the new rates are stacking up against what other insurers are offering. 

Under certain circumstances, you may want to change your policy or insurance before the renewal period. For instance, the policy may not be offering adequate policy, or the company has terrible customer service. 

In cases like this, switch to a company you are confident in, so that you will not be stranded should you need to make a claim. Most insurers will refund your remaining balance if you paid in advance, however, they may charge a cancellation penalty.

When should I shop for new insurance?

If you get married, auto insurance will be substantially affected. You may decide on the same insurer, which means you get multi-policy and multicar discounts.

Buy A Used/old car purchase – will require a fresh set of quotes compatible with your car. Factors such as theft rates, cost differences, and the machine’s equipment may be reasons why it is more expensive to insure certain vehicles compared to others.

 Some helpful tips when auto insurance shopping

  1. During the shopping period, ensure your insurance declarations are close by in case you need to verify your current coverage.
  2. As you switch your insurers, ensure you maintain the same amount of coverage. It is not a better deal if the limits are not as comprehensive as before.
  3. If you just purchased your car, there is no wrong time to get insurance. In fact, it is advisable to get insurance before you drive off the lot to avoid uncertainty risks.
  4. If you are swapping insurers midterm, you are in a position to determine when the new policy takes effect. Thus, you can select your insurance on the day that is convenient to pay the insurance bill.
  5. Update your premiums if you intended to switch midway. This is because some insurers will demand you pay off any outstanding payments. 

Final Takeaway 

Shopping around for car insurance has a lot of benefits. It is crucial to get the best reliable coverage because you can never dictate when disaster will strike. In case of questions or uncertainties, always consult with your insurance agent. They will advise you accordingly regarding your queries.

Updated on May 3, 2020

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