Sometimes drivers stop shopping around for an insurance policy just because they’ve found one that works, but this can cost drivers hundreds of thousands of dollars in the long run. You shouldn’t assume a vehicle insurance policy will continue to be the best, just because it was a great value at time of purchase. Insurance companies often have rates that can vary considerably over the course of a policy. Beyond that, insurance companies are notorious for not offering new discounts or deals on rates to existing customers. Instead, these types of specials are only offered to new customers to draw them into business with the company. Shopping around every year for the best vehicle insurance policy evens the odds that you’ll find one at the right price for you.
While an insurance company may have given you the best rate they could offer last year, they won’t automatically give you this same better rate this year. In most cases there is no way for a driver to get the bonuses and rates insurance companies offer new drivers. If you want the best value that the new yearly bonuses and plans offer, you’ll probably have to go to a new company to get them. On rare occasions, informing your existing insurance company that you are going to be cancelling the policy can make up some of the difference, as they may have incentives for you to stay on board. Normally, these incentives will still fall short of what new policy holders are offered in the initial period.
Shopping around every year for the best insurance policy can take time, but can also mean major savings. Taking the time to research, and calling around to see what all offers are on the table when it comes time to renew your vehicle insurance is a great way to save money in the long term. Don’t feel bad, or like you owe loyalty to one particular insurer. Just like you, they are looking to save the most money possible every year.