The answer to this question is an easy one, every six to twelve months! What is not so easy to understand is why it’s important to re-quote yourself every few months and how It can impact you financially. Knowing this information will probably have you leaving reminders on your cell phone, emails and sticky notes on your fridge to ensure you don’t forget to get a re-quote. So, let’s got through those reasons for you.
Why and how to shop around?
The vehicle insurance industry is a competitive one. The insurer that gave you the best rate last year might not have the best rate this year. The chances of finding a more competitive premium are highly likely as insurance companies are forever changing their rates. However, on the off chance that you don’t find a cheaper premium it will be good to know that you aren’t missing out on any savings.
Getting an insurance quote doesn’t have to be a pain staking process. When working through a broker, it can be fairly quick and convenient. What’s more, is that you can ask your broker every so often to re-quote you. Many brokers such as QualityQuote work with many different insurers and are able to shop around for you, saving you quite a lot of time and effort.
What determines an insurers rate?
- External Factors
There are numerous factors that contribute to Insurers rates changing, one of those factors being risk changes such as weather events, damaging storms, changes in population and even legislation. This means that rates can change month to month and even day to day. Historical data is used to forecast the potential exposure to claims pay-outs for the following year. This will lead an Insurer to increase or decrease rates depending on the risk.
Not all Insurers are the same, each Insurer determines its consumer risk rates differently. For example, Smith Insurance considers a seven-year claim free history as good and will award a discounted rate, while Peter Insurance considers a four-year claim free history as good and award a discounted rate based on four years.
- The Consumer
With all the above being considered we can’t forget the most influential factor, you! Your Insurance history is one of thos factors. If you have been driving for many years without any accidents you would most likely receive a good rate, as you would be considered a low-risk driver. If you are new to insurance or have previously logged a claim, you might be considered a high-risk driver and could possibly pay a higher rate.
Until death do us part! That’s right, being married will award you a lower rate! Married couples are statistically considered a lower risk while single people are considered a high risk. If you are single you might want to consider settling down if you want to find yourself a cheaper insurance rate.
There you have it! Insurers rates will always fluctuate there will never be an exact day, month or time as to when rates may decrease or increase, nor will all Insurers have the same rates. Speak to a broker or contact us at Quality Quote to see if there are some savings waiting around the corner for you!
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