We recommend comparing the quotes of at least three different insurance companies to ensure you get the best rate. Choose a higher deductible. Look for discounts you might be eligible for. No, most car insurance companies don't charge a fee for canceling your car insurance in the middle of your policy.
However, there are ways to keep car insurance costs low by comparing car insurance companies and looking for the right discounts. While changing insurance companies can end up saving you money on car insurance, there are sometimes good reasons to stick with your current insurance company. You should also compare car insurance if it's been a few years since you had an accident or were fined or another driving violation. Also known as pay-per-mile insurance, usage-based auto insurance coverage measures driving behaviors and mileage and uses this data to set rates.
Even a brief break in coverage can result in much higher fines and insurance rates, so make sure you have a new policy before you cancel your current one. As a new driver, there are several factors that can affect the specific auto insurance rate you'll pay, such as your location, vehicle, driving history, and credit history. By linking the monthly bill to real driving time and good driving habits, usage-based insurance policies often end up costing customers less than traditional car insurance, according to the National Association of Insurance Commissioners. You should look for better car insurance rates when your current policy is about to be renewed, as well as every time you have a major change in your life, such as getting married or moving to a new state.
If any life circumstances that affect your car insurance rates have changed, there's an even greater chance that you'll be able to find a better rate with another insurance company. Generally, the best way for young drivers to get cheap car insurance is to stick with their parents' policies. Because car insurance costs vary from person to person, there are tips for new drivers that are specific to each of these groups. New drivers pay much more for car insurance than experienced drivers, but some companies still offer great prices and comprehensive coverage.
Changing car insurance companies can save you hundreds of dollars a year, and it won't cost you anything to look for cheaper rates.