How Often Should You Change Car Insurance?

Car insurance is no longer a “set it and forget it” type of expense. Data from the Bureau of Labor Statistics shows that, on average, auto insurance prices rose by 55% from 2020 to 2025. Most of this increase has occurred quickly, with 2022 and 2024 being particularly rough years. There is not much indication that the price squeeze is letting up.

Still, many people are loyal customers for years simply because changing car insurance is too much of an inconvenience. This is not necessarily being rewarded. In fact, a report from an insurance marketplace Jerry found that 22% of customers who switched their car insurance did so with the goal of securing better rates. The message here is clear: if you are not shopping for car insurance, you are likely paying too much.

How Often You Should Actually Shop for Car Insurance

You should comparison shop every single renewal. This may be once a year for some people, but more insurance companies are now using six-month policies instead of twelve-month ones.

Don’t wait until the last minute. If you wait until right before your current policy is set to run out, you may not be able to get new insurance in time, and you will be left with no insurance at all. This situation is unacceptable, especially during months of climate uncertainty.  Many insurance companies will give you a discount if you start your new policy before your old one ends.

Situations That Should Trigger Shopping Immediately

Renewals are just the beginning. A move is a major one. Even a change in zip codes within the same state can change your premiums based on variations in traffic density, theft, and weather patterns. On the other hand, becoming a homeowner or installing a garage can open up discounts, especially when bundling auto and home insurance.

Getting married is another occasion when discounts are likely. Insurers view married drivers as lower risks, and bundling policies can provide discounts for multiple vehicles. Just remember that most insurers will require listing all drivers in the household.

Adding a teenage driver is another occasion when shopping around can pay off. Teenage drivers are costly to insure, but some insurers price them significantly more favorably than others. The difference can easily be thousands of dollars a year.

Buying a new car is another occasion when it’s time to shop around. Car type, repair costs, safety features, and theft rates all count. Some cars are bargains to insure, even if they cost more, while others are money pits that insurers quietly avoid.

Improved credit is another overlooked trigger. In most states, better credit translates to lower insurance costs, but your current insurer won’t always reprice automatically.

How to Shop Without Wasting Time

Getting quotes is now mostly done online. You will need basic personal information, driving record, vehicle details, and an estimate of how many miles you drive per year. When comparing quotes, do not just compare the price. Compare the limits of coverage, deductibles, exclusions, and whether you are actually comparing similar policies.

Consider raising your deductibles. They can lower your premiums, but only if the amount you pay out of pocket wouldn’t sting if you had to make a claim tomorrow.

How to Switch Without Messing It Up

Changing car insurance policies is easy, but making mistakes with timing can be costly. The first and foremost rule is to ensure continuous coverage. Your new policy should begin on the same day your old policy expires, not a day earlier and certainly not a day later. This is because even a single day of being uninsured can be recorded with industry reporting systems, leading to higher premiums for years to come.

Begin with the new policy. This involves choosing the limits of coverage, deductibles, and payment options and then verifying the date of commencement in writing. Once you have proof of coverage, make sure to retain a copy, as this may be required by your state or lender.

After the new policy is in effect, cancel the old policy with your current insurer. This is because your old policy will not automatically expire, especially if you are using the autopay feature. You can contact your insurer and verify the date of cancellation and then ask for written assurance that the policy will not renew.

The Bottom Line

Car insurance pricing is designed to reward interest, not loyalty. Rates change all the time based on market conditions and other factors. And these rate changes aren’t based on how loyal you’ve been as a customer. If you’re not actively looking at other options, then you’re basically consenting to whatever rate change your insurance company decides to impose on you at renewal time.

The good news is, even looking at other options doesn’t necessarily require making a change. It’s a way for you to make sense out of what’s going on. Are your rates based on your driving history, or are they simply rising along with the market? Often, the biggest savings are based on competition for a new customer, rather than loyalty.

Insurance is like any other large expense for your household. It’s a good idea to review it at renewal time, review it when your life circumstances change, and question rate increases that don’t make sense based on your driving history and vehicle. In today’s market, being informed isn’t optional. It’s how you prevent a necessary expense from becoming a costly one.