10 Reasons to Shop for Car Insurance Every Six Months

EVA
Welcome back to The Deep Dive. Today we’re diving into something that impacts pretty much all of us, right? Car insurance. You send us this article, 10 Reasons to Shop for Car Insurance Every Six months and honestly, some of these reasons why you should shop around. I had no idea.

MAX
Yeah, it’s really interesting. A lot of people, they get their insurance and they just kind of figure that’s it, right? Like I’m done now. I don’t have to think about this for a while.

EVA
Exactly.

MAX
But there are so many things that change over time that can affect your rates and the discounts that you might be eligible for.

EVA
OK, so let’s dive right in. One of the things that really surprised me reading this article. Like who knew getting older could actually save you money on car insurance?

MAX
Right. It seems counterintuitive, right? But it makes sense when you think about it from the insurer’s point of view. So as you get older, you have more experience on the road, it’s statistically you’re less likely to get into an accident and they see you as lower risk and they’re willing to adjust your premiums to reflect that.

EVA
I guess it’s all about risk assessment for them.

MAX
It really is.

EVA
OK, so age, that’s one thing, but then they were also talking about all these big life changes like if you get married, buy a house, even improve your credit score. These can all lead to discounts like hitting all these adulting milestone.

MAX
Right. And they see these things as signs of stability. You’re more likely to stay in one place. You might be more financially responsible. And again, all of that factors into how they assess risk. Makes sense. And Speaking of risk assessment, this is one that I think a lot of people don’t realize. Insurance companies also look at your credit history.

EVA
Really.

MAX
Yeah. And you might be thinking, well, what does my credit score has to do with my driving? Right? And it’s a fair question. Yeah. But studies have actually shown that people with better credit scores tend to be more financially stable, and they’re less likely to file insurance claims. So it’s a little bit of a controversial topic, but it’s definitely something to be aware of.

EVA
Yeah, I had no idea about the credit score connection, but it makes sense. The way you explain it, it’s like they’re trying to get the full picture of you, not just like, oh, you get a speeding ticket one time.

MAX
Exactly. They’re trying to figure out what are the chances that this person is actually going to cost us money down the line, right? And how can we price their policy accordingly? OK. And Speaking of things, that can really make your rates go up when teenagers start driving.

EVA
Oh yeah, that’s a big one.

MAX
Big one The article mentioned that your rates can increase by as much as 79% when you add a teenager to your policy.

EVA
79%.

MAX
79% it’s a huge jump. Wow. And it really highlights why it’s so important to shop around.

EVA
Right.

MAX
And compare quotes when your teen gets their license.

EVA
Yeah, that one factor alone could really throw a wrench into your budget.

MAX
For sure.

EVA
OK, so we’ve talked about how you know your personal circumstances, your age, your life changes, all that can impact your rates. But it’s not always about you, right? The article also talks about how external factors like things you can’t even control. Yeah, absolutely can play a role too.

MAX
So things like where you live, weather events, OK even how many other people in your area use the same insurance company?

EVA
Really.

MAX
It all ties back into that risk assessment.

EVA
Right, because if they’re having to pay out a lot of claims in a certain area exactly, it makes sense that they would adjust the rates for everyone in that area.

MAX
Exactly. So even if you have a perfect driving record, right, you could still end up paying more just because of where you live or, you know, if there was a hurricane recently that caused a lot of damage.

EVA
It feels almost unfair in a way, like you’re being punished for something that’s totally out of your control.

MAX
Yeah, it can be frustrating, yeah. But it’s important to remember that they’re using data to calculate these things. And sometimes that data reflects larger trends that are beyond any one person’s control. But that brings up another interesting point. You know we’ve been talking about how insurance companies assess your financial stability, right? But the article also mentions how important it is to consider the financial health of the insurance company itself.

EVA
That’s a really good point, I’ve honestly never even thought about that before. Like I just assume, oh, if they’re a big enough company to advertise on TV, they must be doing OK, right you.

MAX
Would think so, wouldn’t you? Yeah, but bigger doesn’t always mean better, right? And that’s why the article mentions resources like AM Best and Standard and Poors.

EVA
I’ve heard of them, but I’m a little fuzzy on what they actually do.

MAX
Yeah. So those are independent rating agencies that specifically evaluate the financial strength of insurance companies. They look at things like an insurer’s reserves, their investment portfolio, their overall financial stability, and then they give them a rating based on how likely they are to be able to pay out claims if a lot of people need to make claims at the same time.

EVA
So if a company has a good rating from one of these agencies, that means you can feel pretty confident that they’re not going to go belly up when you need them the most. That’s reassuring.

MAX
Right. You want to know they’re going to be there to have your back.

EVA
Absolutely. It’s like you’re already paying them for this service. You want to make sure they can actually deliver on it for sure if you ever need it. OK, so we’ve talked about like our personal finances and now the insurance company’s finances. But the article also had some interesting stuff about how like the actual Pars we drive, you know, how those factor into the rates? Absolutely, which duh, makes sense. But like I already have my car So what can I really do about that?

MAX
Well, that’s where understanding depreciation comes in. So the article mentions that obviously as vehicles get older they lose value.

EVA
Right, right.

MAX
And that’s going to impact how much your insurance premiums are.

EVA
Oh, OK. So it’s not just that my car is more likely to breakdown because it’s older, it’s also that they’re taking into account like what it’s actually worth.

MAX
Precisely.

EVA
Huh. OK, so how much of a difference does that actually make?

MAX
Well, it can be more than you might think actually. The article says it on average a vehicle loses like 2.4% of its value every year. But for some cars, especially like luxury vehicles, that depreciation can be way higher?

EVA
Oh, really?

MAX
Yeah, some of them lose as much as 20% in just the first five years.

EVA
Wow, 20.

MAX
20%, yeah.

EVA
So if you’re driving a fancy car, you’re not just paying more upfront, right? You’re potentially on the hook for more insurance too as it gets older.

MAX
Exactly. Huh.

EVA
See, This is why I like doing these deep dives. Like this is not something I would have thought about before, right? But it makes total sense when you explain it.

MAX
And this is a perfect example of why you want to be reviewing your coverage regularly because as your car depreciates, yeah, your needs change, right? So you might find that as your car gets older, you can actually adjust your coverage levels.

EVA
Oh, OK.

MAX
To more accurately reflect what its market value is. Gotcha. And potentially save some money.

EVA
So you don’t want to be over insured on a car that’s not worth as much as it used to be?

MAX
Exactly.

EVA
Right. You got to find that balance.

MAX
Right. But I find that sweet spot between being covered, yeah, if something happens, right? But not, you know, paying more than you need to.

EVA
Exactly. Exactly. And, you know, this kind of ties into something else that the article talked about, which is like how our driving records can impact our rates, which I feel like is kind of a duh moment. Like, yeah, if I get a speeding ticket, obviously my insurance is going up. But I think they were also saying that even smaller things can make a difference too.

MAX
Absolutely. And this one surprised me too, actually. Yeah. I didn’t realize that even things like parking tickets, oh real can actually show up on your driving record. And while, you know, one parking ticket, it’s probably not a huge deal in the grand scheme of things.

EVA
Right, right.

MAX
But if you have a bunch of them, or if you have a pattern of those kinds of minor infractions.

EVA
Yeah, yeah.

MAX
It can signal to the insurance company like.

EVA
Yeah, like maybe this person’s not as careful as they think they are.

MAX
Exactly.

EVA
Wow, I had no idea that parking tickets could come back to bite you like that. Right. When it comes to car insurance, that’s crazy.

MAX
It’s wild, isn’t it?

EVA
Yeah, it makes you realize, like, OK, I really do need to pay attention to all my driving habits. Not just like, am I speeding, am I running red lights? But like, am I even parking legally?

MAX
All the little things add up.

EVA
Right, exactly, exactly. So driving record, that’s huge. But here’s another one that I would not have thought of. They were talking about how important it is to maintain continuous coverage. Now, why would that matter? Like I get if I had an accident and I didn’t have insurance, but if I’m a good driver and I just haven’t had insurance for a little while, why should that affect my rates?

MAX
It’s a great question. And you would think that logically it shouldn’t matter that much, right? Right. Like if you’re a good driver, you’re a good driver. Yeah. But the way they see it, yeah, is even if you have a relatively short lapse in coverage.

EVA
Like how short are we talking?

MAX
Like even 30 days? Nice. 30 days or more? Oh wow, that can lead to higher premiums when you go to get insurance again because it’s almost like starting from scratch in their eyes.

EVA
Oh, OK.

MAX
Like they see that gap and it’s like a question mark.

EVA
It’s like a red flag.

MAX
Exactly. Huh? Like why weren’t you insured before? What’s changed now?

EVA
Oh, so even if I’m a great driver, if I’ve just had this gap in my insurance history?

MAX
It could work against you.

EVA
That’s kind of crazy, isn’t it?

MAX
It is, it is, and I’ve even heard of people like cancelling their insurance if they know they’re not going to be driving for a few months.

EVA
To save money.

MAX
Exactly thinking, well, I’m not even using it. Yeah, but it sounds like that could backfire big time.

EVA
It really could.

MAX
When you go to get insurance again, wow, it’s always, always best to talk to your insurance agent, right? Or your company, Yeah, before you make any big changes to your coverage. Yeah, because they can tell you, like, what the potential consequences are, right? And if there are other options?

EVA
OK.

MAX
That might make more sense for you.

EVA
That’s a really good point. Honestly, this whole deep dive is making me rethink like, my whole approach to car insurance. Like, I feel like I’ve always just kind of, you know, tried to find the cheapest thing and then just, like, forget about it.

MAX
Right, set it and forget it.

EVA
Exactly. But it’s not that simple, is it?

MAX
It’s not. It’s an ongoing thing.

EVA
It’s more involved.

MAX
It really is. You’ve got to be paying attention.

EVA
Like a relationship.

MAX
It is. It is.

EVA
Like car insurance, it’s a relationship, man. You got to put in the work.

MAX
You got to put in a little effort.

EVA
A little effort, Yeah, exactly. But that brings us back to the whole point of the article, which is like, yes, shop around, compare quotes. And not just like once, but every six months.

MAX
Regularly.

EVA
Regularly. Yeah. Because things change. They do, right? Like, my life might not change dramatically in six months, but the insurance landscape can. Absolutely. Rates go up, rates go down, new discounts, all that stuff.

MAX
Right, for sure. And you never know what might have changed, even with your same company exactly. They might have a new discount that you qualify for now that you didn’t before.

EVA
Right. OK. So it’s not just about finding like the cheapest rate out there in a vacuum exactly. It’s about making sure that like what you’re getting is actually the best value.

MAX
For you.

EVA
For you at that moment in.

MAX
Time. At this point in time, exactly.

EVA
Oh, OK, so much to think about.

MAX
There is.

EVA
But I feel like we’re getting closer to really understanding like the insurance and outs here.

MAX
We’re getting there.

EVA
OK, good, good. Speaking of understanding the insurance and outs, yes, they also had a little bit in there about insurance company reviews and like how those can be helpful. Yes, when you’re comparing different insurers for sure. So what’s your take on that? Like are those actually useful? Should I be reading those?

MAX
I think they can be really valuable, because they give you a window into the customer experience.

EVA
Oh, OK.

MAX
Which you know is really important because you can find a company that has a good price.

EVA
Right.

MAX
But if they’re a nightmare to deal with if you ever have to file a claim, yeah, it’s not worth it.

EVA
Not at all.

MAX
So reading reviews from other customers can give you a sense of like, what’s their reliability like, gotcha, what’s their customer service like? What’s their reputation? It’s like getting a behind the scenes look at what it’s actually like to be their customer.

EVA
That’s a good point because like you said, I could find the cheapest rate, but if they make me want to pull my hair out when I actually need to use the insurance exactly what’s the point?

MAX
Exactly. You’ve got to find that balance, yeah, between the price and the quality of service.

EVA
The price and the quality of service, it’s all connected. It’s like you said, you can’t just focus on the price tag. It’s not. Look at the whole picture the.

MAX
Whole picture, yeah. And Speaking of things that can make a difference in that whole picture, yeah, let’s circle back to those discounts we were talking about earlier.

EVA
Oh yeah, the discounts.

MAX
Because this article really drove home the point that there are a ton of potential discounts out there, right? It’s like a goldmine.

EVA
It’s like this whole secret menu of savings.

MAX
Right, like you have to know the right things to ask for.

EVA
Yeah, exactly. And one thing that stood out to me was like how much the discounts can actually vary. Oh for sure. From one company to the next, Absolutely. It’s not like everybody offers the same 10% off if you’re a good driver, you know?

MAX
Right, it’s all over the map. One company might give you a discount for being a homeowner. Another one might give you money off if you’re a member of a certain organization or maybe you have safety features in your car, right, that one company really likes. So they give you a discount for that and another company doesn’t even ask.

EVA
So even if I’m like pretty happy with my current car insurance, it’s still worth.

MAX
It’s worth looking around.

EVA
Looking around because who knows, maybe somebody else has a discount that like perfectly fits my life.

MAX
Exactly, and especially after those big life changes we were talking about all.

EVA
Right, right. Yeah.

MAX
That’s when you really want to be checking, because you might suddenly be eligible for a whole bunch of new discounts.

EVA
It’s like leveling up in the game of life, right?

MAX
You get married.

EVA
Boom, discount is going to lock. Exactly. I like it. I like it. OK, so we’ve got discounts for like life events. What else?

MAX
Don’t forget about good old fashioned safe driver discounts.

EVA
Oh yeah, like if you take a defensive driving course.

MAX
Exactly, or if your car has certain safety features.

EVA
Right, like anti theft systems or lane departure warnings, all that good stuff.

MAX
Exactly. They’re basically rewarding you for being a responsible driver.

EVA
Which is nice for once.

MAX
It is nice.

EVA
It’s like they’re saying, hey, thanks for not crashing into things.

MAX
We appreciate your business, right?

EVA
And you know, this kind of reminds me, we were talking earlier about bundling your insurance.

MAX
Yes, yes.

EVA
That’s like the classic discount, right?

MAX
It is a classic for a reason.

EVA
Right. But it’s easy to forget about it. Yeah, when you’re thinking about all these other things. It’s true. So remind us again, like what’s the deal with bundling and why is it so great?

MAX
So basically, instead of just thinking about your car insurance in isolation, OK, you look at all your insurance needs, right? Like.

EVA
Renter’s insurance, homeowner’s insurance, all that stuff.

MAX
And you see if you can get a better deal, OK, by putting them all together, gotcha with the same company.

EVA
So it’s like one stop shopping.

MAX
Exactly. It’s Streamlines.

EVA
It’s like the costo of insurance.

MAX
Exactly. Buy in bulk, save money.

EVA
I like it. OK, so much good stuff to think about here.

MAX
There is.

EVA
I feel like this whole conversation has really highlighted, yeah, that car insurance is not just a transaction.

MAX
It’s not a one time thing.

EVA
It’s not like buying a T-shirt, No, it’s more like a, like we said, a.

MAX
Relationship.

EVA
It’s a relationship. It is.

MAX
It takes work.

EVA
It takes a little effort.

MAX
It takes communication.

EVA
Exactly.

MAX
Don’t be afraid to talk to your insurance agent.

EVA
Yes, pick up the phone, send an e-mail.

MAX
Right. Ask a question. Ask.

EVA
For what you.

MAX
Need advocate for yourself?

EVA
Absolutely.

MAX
Right, because at the end of the day, it’s a service.

EVA
Is this a service?

MAX
And we’re the customers.

EVA
You’re the customer.

MAX
We have the power. I feel empowered you.

EVA
Should.

MAX
This is awesome. Honestly, Car insurance. I’m not going to lie, it’s not the most thrilling topic in the world.

EVA
Maldivi that right?

MAX
But I feel like today.

EVA
We really like broke it down, We unpack it, made it understandable, hopefully less boring.

MAX
A little less dry.

EVA
A little less dry? Exactly.

MAX
It’s all about how you look at.

EVA
It, that’s so true. OK, so on that note, yeah. Any final thoughts for our listeners before we wrap up this deep dive?

MAX
You know, we’ve been talking about car insurance this whole time we have.

EVA
But.

MAX
What if we took these same principles, this idea of shopping around, comparing, doing your research? Yeah, yeah. What if we applied that to other parts of our financial lives?

EVA
Oh, that’s a good point. Like what about our phone plans?

MAX
Phone plans, Internet, even groceries.

EVA
Groceries.

MAX
Like are we getting the best deals on those things?

EVA
It really makes you think.

MAX
It really does.

EVA
Could there be more savings out there?

MAX
You never know.

EVA
We might need to do a whole other deep dive on that.

MAX
We might have to.

EVA
OK, well, we’ll put a pin in that for now. There you go. But in the meantime, thank you so much for joining us for this deep dive into the surprisingly fascinating world of car insurance.

MAX
My pleasure, always a good time.

EVA
Until next time.