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Drivers have been comparing their auto insurance options this year. Check out the top reasons to shop for auto insurance to see if you should do the same. [[{“value”:”
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If you’ve been thinking about shopping for auto insurance, join the club. Consumers have been doing this at record rates, according to the J.D. Power Quarterly Shopping LIST Report. It reports that 13.5% of consumers shopped for auto insurance in March, up from 12.1% in January.
Drivers look for auto insurance for a variety of reasons. J.D. Power also tracks the most popular reasons and the share of consumers shopping for each one. Below, you’ll find the top five for the first quarter of this year.
1. My rate was too high (21.3%)
Auto insurance rates have been rising. In 2023, they increased a whopping 20.2% over the prior year. So it comes as no surprise that high rates are the most popular reason people shop for auto insurance.
If your premiums are giving you sticker shock, shop around to compare your options. You may want to start by getting quotes from the top car insurance companies. Or you can use a car insurance comparison tool — you plug in your information and receive quotes from various carriers.
2. Just browsing rates (17.1%)
Some drivers are just looking. Way back at the start of 2022, this used to be the most common motivation for auto insurance shopping. Nearly one-quarter (24.8%) said they were shopping for this reason. But as premiums have gone up, the share of drivers passively shopping around has gone down.
Still, even if you’re satisfied with your current car insurance policy, it’s good to get into the habit of rate shopping at least once a year. You won’t know if there’s a better deal out there unless you look. Car insurance companies are also known for price optimization, a practice that involves charging higher rates to drivers who aren’t expected to shop around.
3. My rate recently increased, not claim-related (14.6%)
A rate increase can be more than enough motivation to start shopping around, especially when it’s not because of anything you did. If your carrier recently bumped up your premiums, consider rate shopping to see if there are any cheap car insurance companies that will charge you less. Another option is to see if your carrier has any auto insurance discounts you qualify for.
4. I bought/am planning to buy a new vehicle (12.6%)
Auto insurance companies determine your rates based on many factors, but one of the most important is the vehicle you drive. But every company has its own method for calculating rates. This also means that when you get a new car, your current insurance company might not be the right option anymore.
5. I received a renewal notice (7.7%)
Finally, some consumers decide to shop for auto insurance when they get their renewal notice. Policies usually renew every six or 12 months, depending on the insurance company, so this can work well as a reminder to shop around for new coverage.
When to go shopping for car insurance
As you can see, there are plenty of reasons to shop for car insurance. Some think their current policy has gotten too expensive. Others just want to see what’s out there, or they were prompted by a new car purchase or an insurance renewal notice.
Here are a few signs you should check out your options for car insurance:
Your rates are too expensive and the bills are affecting the rest of your finances.Your car insurance company has been steadily raising your rates.You’ve had a life event that could affect your insurance, such as a move, a new car, or an accident.
Even if none of those is true, remember that it never hurts to shop around. In fact, it’s better if you do, since drivers who don’t often get charged higher rates. It doesn’t take long, so make sure to do it every six months to a year.
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