Will My Car Insurance Go Up if I Switch Insurers?

It is natural for drivers to look to switch insurers when they feel they are paying too much for car insurance. However, this isn’t always the best option. While it is important to keep track of quotes in your area, switching insurers too often can actually cause your insurance rates to rise. a car driving down a street next to a tree

a car driving down a street next to a tree

Every time you look for insurance, the quotes can rise. Most insurers want you to stay with their services for as long as possible, so they offer discounts for loyal customers to remain for a certain amount of time. Jumping between insurers can prevent you from enjoying this type of discount.

Changing Car Insurers After an Accident

The time your insurance premiums are likely to go up the most is right after an accident. In general, it is not recommended that you switch insurers directly after an accident. Although your premiums are likely to rise, your insurer is likely to work with you, especially if it is your first accident. On the other hand, switching insurers right after an accident can cause your premiums to jump even if the new insurer initially offers cheaper prices.

When Should I Switch Car Insurance?

This doesn’t mean that you shouldn’t ever switch your car insurance provider, however—especially if you’re unhappy with your current price or service. In general, you should keep an eye on quotes in your area around the time your renewal grows close. Once you find out how much you will be paying for the upcoming year, you can compare prices and make sure that you are still paying premiums you are happy with for the coverage you need.

Simply looking at insurance prices won’t raise your rate, after all, so keep track of premium changes in your area. Also keep track of other possible factors that could be influencing the cost of your insurance. Drivers see a significant drop in their insurance rates once they turn 25 or when a violation drops from their record. If you have a driving violation that is about to leave your record, you may want to stay with your insurer to see how much your premiums will go down before checking quotes from other insurers.

When in doubt, ask your car insurance agent if you qualify for any discounts and find other ways to save money before attempting to switch insurers.