Do you need to wait until your renewal date to shop for car insurance? The short answer is no, because you can actually change your policy at any time during the policy term.
If you had an at-fault accident exactly five years ago, today is an important milestone. That old accident just aged off your record, which means you might find much better rates right now. You certainly do not need to wait until your current car insurance policy ends to start saving money.
Why the Five-Year Mark Matters in Car Insurance
Insurance companies look closely at your driving history to set your price. Most standard accidents stay on your state driving record for three years. However, many car insurance companies look back three to five years to determine your monthly premium.
Since five full years have passed, that incident should no longer hurt your rates. Because your record is clean again, you are in a great position to lock in a cheaper premium today. Caveat, there are some companies that look back as far as seven years.
How Mid-Term Switching Car Insurance Works
You might worry about losing money if you cancel and purchase a new policy before your term is complete. However, canceling a car insurance policy mid-term is very straightforward.
First, your current car insurance company will provide a pro-rated refund less any policy fees. This simply means they will pay you back for the days you did not use. Next, most major companies do not charge an early cancellation penalty. Even if yours applies a minor fee, your new monthly savings should easily make up for it.
Steps for a Smooth Switch
To avoid a gap in coverage, follow these simple steps:
- Shop around and compare new quotes.
- Pick the best policy and pay your first bill to activate it.
- Finally, call your current company and cancel your old policy effective the same date the new one starts.
Get Help from a Local Independent Car Insurance Agent
Shopping for car insurance takes a lot of time and effort. Instead of doing it alone, you can partner with a local independent insurance agent. For example, Texas drivers can reach out to AlphaSure Affordable Insurance Services. With convenient offices in San Antonio and Laredo, they can easily help you shop around for the best car or home insurance.
Independent agents do not work for just one big corporation. Instead, they compare rates from many different insurers at once. As a result, they find the best rates that won’t hurt your budget.
Start Saving Today
In conclusion, do not wait around for your next renewal letter in the mail. If your driving record recently improved, start looking for a new insurance policy today.
