In the next two months, you'll likely lay out about $1,500 on holiday spending according to BMO's 2014 Holiday Outlook. That's a good chunk of change that can put a serious dent in your wallet. Help your wallet survive the holiday season by doing something you're going to end up doing anyway: shop around.
"But, my policy isn't up for renewal yet."
Don't let that stop you from potentially saving money. You're free to compare quotes to see if a better rate is available at any time, and if you find a better rate you can even drop your current insurance provider for a new one. However, if you opt to change insurance companies mid-policy you'll likely pay a cancellation fee. These fees vary by company, the price of your policy and how far along you are into your current contract. But, if the cancellation fees are less than what you could be saving, why wouldn't you consider it?
Debunking The Myth Of Car Insurance Renewals
It's a popular misconception that the only opportunity to change insurers is at renewal time. This is simply not true. While switching on renewal may mean you'll avoid the early cancellation fee charged by some insurers, often the savings can make up for it.
- Related Read: Twelve Common Myths About Auto Insurance
- Related Read: 4 Car Myths, Rumours and Urban Legends: Are They True?
There are actually a number of times when it makes sense to spot check what you're paying for car insurance against the rates of other insurers regardless of whether or not it's renewal time, like:
- If you move. When you move, your premiums will likely change because insurance rates vary by location.
- Buy a new car. Part of your car insurance premium is determined by the type of car you drive, so if you change cars, chances are your car insurance rate will change too.
- Get a ticket or have an accident. Each insurer rates tickets and accidents differently, and some will penalize you less than others.
- Improve your driving history. As tickets and accidents fall off your record, an insurer that didn't offer you a good rate with accidents or tickets, could be the one that offers you the best rate now.
- Get married. You may find that the company that provided you the best rate individually may not be the same company that provides the best rate for the two of you.
You don't have to wait until your policy is up for renewal to see if you could save money now. Put some cheer into your holiday and compare car insurance quotes today.