The start of a new year is a time when you can set new goals and reassess old ones. As I was doing that myself, and looking to save money this year, I asked: when is the best time to buy insurance?
As I was shopping around recently for my family, I had some questions. To learn more, I spoke with Ryan Adcock with AAA Tidewater.
He says the best time to shop your policy isn't a certain time of year, but rather when you have a big change in your life. Some examples he gave include a new car, getting married, and a new child in the family.
Adcock says preferred policy options vary from person to person since we're all looking for something different out of our coverage.
"There's not really a one-size-fits-all for shopping for insurance," he told me.
I also spoke with Shannon Martin, an insurance analyst with Bankrate. She says now is the time to ask yourself if your policy needs to be changed, if your premium still fits your budget, and if you like the service you're currently getting.
"People are a little nervous about the rate increases that they might receive in 2024," said Martin. "There's no indication that current trends are gonna get cheaper anytime soon."
She says companies should be willing to work with you if you have concerns regarding your rate.
"Companies want to keep customers right now. They know people are unhappy with the rates, so they should go out of their way to help you out as much as possible," said Martin.
But if you do want to call around for pricing, Martin says it's not a bad idea to explore your options. In fact, she says doing this on an annual basis is advisable.
"We like to say it's good to shop around for your auto and your home policy about once a year," said Martin.
She also advises people to ask their policyholder what perks and discounts they can earn.
"You might want to stay where you are because you can earn discounts by being a loyal customer," said Martin. "[It] usually takes three to five years to get those savings."
Martin says many companies offer "good driving" discounts or student driver discounts.
AAA Tidewater also offers a senior defensive driving class.
"[The class] is for people over 55. They get a certificate at the end of that class and they can then take it to their insurance provider for a discount," Adcock says.
So if you're shopping for insurance, keep these expert tips in mind:
- Shop when there is a major change in your life
- Compare prices at least once a year
- Ask about bundling because you can get bigger discounts for that
Another thing to keep in mind: If you bundle with a spouse, you'll want to take their situation into account. For example, if they have had any vehicle accidents or any house fires in the past, that could raise both of your rates. In that case, it may make more financial sense to keep separate insurance.
