Auto insurance provides financial protection in the event of an accident, but how do drivers avoid overpaying for coverage? Though shopping around may seem like a cliche, it’s still great money-saving advice. Most people should shop for new auto Insurance in Walnut Cove NC every six months to ensure they’re getting the best deal. Here are a few reasons why.
Maintaining Coverage and a Clean Driving Record
Normally, auto insurance is costliest for first-time buyers and those who’ve let their coverage lapse. Some insurers look at non-covered drivers as too high of a risk and won’t offer coverage until the person has been covered somewhere else. After six months of continuous coverage, however, one’s risk level decreases, and the person becomes eligible for more insurance discounts.
Here’s a great birthday gift: the older a person gets, the lower their insurance rates will be. Shopping around for new rates is particularly important for young drivers, but older drivers can also qualify for age-based rates. Most auto policy terms run for six to 12 months, which means a driver can get a discount every other term as long as they’re staying covered.
Insurers often adjust their rate algorithms during the year to account for changes in risk, population, and legislation. Therefore, rates may fluctuate from one day to the next. Although such changes aren’t typically significant in the short term, over longer periods they have more of an effect.
Vehicles’ values constantly decrease, and periodic reassessment of insurance rates helps a driver keep that value relevant to their rate. For every year a car or truck ages, insurance costs decrease by 2.4 percent. And, for those lucky enough to own luxury vehicles, rates are up to 20 percent lower for five-year-old models compared to the newest model.
Because so many variables affect the cost of auto Insurance in Walnut Cove NC, shopping for coverage twice a year will help drivers maximize their benefits and keep their insurers honest. Insurance companies are in the business to make a profit, and they’ll rarely provide these discounts without encouragement. Call Darst Insurance today to request a free quote.