Why Do Car Insurance Quotes Change Daily?

Fran
Lucy Lazarony
September 17, 2020

Auto insurance quotes change quite frequently. Even daily quote changes are possible as an insurance company assesses the risk profile of a potential customer. If you move, make modifications to your vehicle or have changes in your driving record, your risk profile will change and you will be given a different auto insurance quote. So the quote you were given last week or even yesterday is no longer valid if your risk profile changes. And sometimes, an insurance company changes its own risk assessments, thereby affecting customer risk ratings, which may change your rate.

Your Risk Level

When auto insurance companies are coming up with auto insurance quotes, they are trying to assess the risk level of each potential customer. They don’t want to insure too many high risk drivers who are likely to file claims. So they get picky about the customers they rate. If they consider you to be high risk, you will be quoted a higher premium.

Inquiry into Your Record

Be aware that every time you apply for an auto insurance quote, your insurance company will do an inquiry into your driving record and accident history. So if anything has changed for the worst in these areas, you can expect an auto insurance quote to be higher. Lying and saying you’ve had no accidents will raise your rate even more because they will see the accident on your record.

Changes that You Make

There are changes that you can make that will have an impact on your auto insurance quote. These include buying a new car, changing your coverage choices and adding another driver to your policy. Changing your neighborhood to one with a higher crime rate will increase a car insurance quote, as will moving to a city and getting into an at-fault accident or getting speeding tickets.

So be mindful of these changes and do everything you can to have a positive influence on your auto insurance quote. You can do this by being a safe driver without accident claims or speeding tickets.

Insurance Companies View Your Data Differently

Insurance companies view your personal information differently. For example, let’s say you have a speeding ticket. One company might increase the insurance quote by 10 percent and another company would increase your insurance quote by just five percent. And that is why it is so important to shop around for car insurance quotes.

You want to find the best insurance deal for the coverage you want and for your personal characteristics. What do personal characteristics have to do with car insurance quotes? Let’s take a look.

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How Personal Characteristics Play a Role

Your age, gender and marital status all play roles in auto insurance quotes. Women make fewer accident claims than men and are rewarded with lower insurance rates. Men make more accident claims and pay more. So women have an advantage when it comes to auto insurance rates.

Your age has an influence on your auto insurance quote. Drivers that are younger than 25 or older than 65 have more serious accidents and pay more for auto insurance. Drivers of the ages in-between 25 and 65 pay less for car insurance and would enjoy lower insurance rates. Your marital status also plays a role in your car insurance quote. There is a correlation between being married and exhibiting safe driving behavior. Because of this, married drivers pay less for auto insurance than singles.

How to Get a Lower Car Insurance Quote

Want that insurance quote to be lower? There are things you can do about it. Here are seven things you can do to lower that auto insurance quote.

1. Keep a clean driving record. As mentioned earlier, keeping a clean driving record can have a positive impact on a car insurance quote. So steer clear of at-fault accidents, speeding tickets and moving violations and save money on your car insurance quote.

2. Choose a high deductible. A deductible is the amount you need to pay before your auto insurance company begins to pay for damages to your car or losses. Choosing a high deductible will help to lower your auto insurance premium. Here’s a tip. Put the deductible amount in a small emergency fund. This way the money will be there should you need it to make an insurance claim.

3. Check for discounts. If you are a good driver, a student or a veteran, you may be eligible for a discount on your auto insurance quote. So be sure to let your auto insurance company know that you qualify for one of these discounts.

4. Drop coverage on older cars. Collision and comprehensive coverages are important optional coverages in your car insurance policy. Collision insurance covers you if you are in an accident with another vehicle or an object such as a fence or tree. Comprehensive coverage covers you in cases of theft, fire and vandalism and acts of weather such as hailstorms and tornadoes. But as cars get older, these two coverages are needed less and less. The maximum payout for collision and comprehensive coverages is limited by the value of the car. So if an older car has a low market value, it may not make financial sense to carry collision and comprehensive coverages any longer. And you’ll save money on your auto insurance by dropping these coverages.

5. Bundle your policy. Bundle your auto insurance policy with another insurance policy such as a homeowners policy. Doing so will save you money on your car insurance. It’s that simple.

6. Insure multiple cars. If you have more than one car to insure, you can save money by insuring them both with the same insurance company. You’ll enjoy a multi-car discount for your efforts.

7. Pay once or twice a year. Rather than paying monthly auto insurance bills, pay the entire annual amount or six-months amount. Your auto insurance premium is lower when you pay once or twice a year.

8. Shop around. Auto insurance companies judge your personal data and information differently. To find the right deal for you and the cheapest deal for the coverage that you want, you will need to shop around. Checking out several quotes at once is the way to go.

SmartFinancial makes this easy to do. Just answer a few, quick questions and you’ll be comparing auto insurance rates near you in no time.

SmartFinancial has access to more than 200 insurance companies so you are bound to find the insurance coverage and price that you want. Insurance companies may change their quotes daily but you can still take steps on your end to get the best deal for you. Be an informed and ready shopper. Be ready to snap up a good quote when you see one, rather than waiting a week to go back to it. As always, shop around. The best quote for you may be from a different insurance company but you won’t know it if you don’t take the time to shop around.

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