According to an Equifax Canada report, consumer debt levels rose to $2.5 trillion in 2024’s second quarter. Many Canadians are looking to save where they can, including on their insurance where their rates may be
If you’re dissatisfied with your current rate, when’s the best time to shop for a new policy?
The short answer is: once per year. It’s a smart move to review your coverage and compare auto or home insurance quotes annually. Many people usually do this around their renewal date, but truthfully the exact time/date is up to you. Let’s dig into it.
Why shop around for a new policy?
People look for a new insurance policy for any number of reasons, but these tend to be among the most common:
- Your rates are too high
- You’re dissatisfied with your company’s service
- Your needs have changed
- You’ve moved to a new location
The reasons listed above aren’t necessarily always cause for shopping around, but they can certainly spark a desire to look elsewhere for coverage. They can also encourage an individual or family to look for better deals even before their policy is up for renewal.
Shopping for a new home insurance or auto insurance policy is recommended because as your situation changes, needs evolve, or prices rise, it’s good to see if there’s a better option out there. And with Mitch, who partners with dozens of excellent insurance carriers in Ontario, your odds of finding that better option are even greater!
Options for when you shop for a new policy
Once you’ve determined your need to shop for a new policy, it’s time to figure out when. Do you need to worry about penalties? Should you always time your shopping for renewal?
Well, the good news is this: you don’t always have to shop around for a new policy around your renewal date, and you can switch companies mid-term. Here are your options for when to shop for a new home, auto, or other types of insurance policies:
After an accident or traffic violation
Getting into an at-fault collision or receiving a moving violation ticket (speeding, unsafe driving, distracted driving – anything where you’re moving and get pulled over by a police officer) are both qualifying events to have your rates raised, assuming you don’t already have an accident forgiveness waiver. Having an infraction on your record can severely increase your auto insurance rates, so it can serve you well to look around for a new policy. If you’ve already had a few accidents or tickets on your record, adding one more could land you in the “high-risk” insurance category.
Finding the best pricing available as a high-risk driver could save you hundreds – or even thousands – of dollars in insurance premiums.
If you’re adding another driver
This is another auto insurance one, but worth noting for any multi-person households: if you add a new driver to your auto policy, your rates can go up. This might be an ideal time to shop around for new policies that will give you a better deal, especially if the new driver is young, a student, high-risk, or inexperienced.
Significant life changes
Have you moved? Purchased a new car or home? Renovated? Some significant life changes may call for the re-evaluation of your existing insurance needs. Sometimes these changes can impact your coverage and premiums, so it’s important to let your broker know about them. This is also an opportunity to ask your broker about the benefits of shopping around. If your life change involves the purchase of a new vehicle or home, you may want to ask your broker about home and auto bundles and which insurance provider offers the best deal. In some cases, you can save up to $600 by bundling both policies through the same carrier!
Once a year
And yes, finally, reviewing your existing insurance policy and rates once a year is always good idea. Nowadays, it’s not unusual to find your rates increasing with each renewal. If you’re unhappy with your current rates, or even if you’re not but want to see if you can find an even better option, your broker can help you shop around. If they find you a better deal, great! If not, you can always try again next year.
Save time and money with an insurance broker
While shopping around on your own can reap some success, using a broker will make it much easier (and quicker) to get quotes from multiple insurance companies. A broker can review your current situation, provide expert advice, and tailor coverage to fit your specific needs – all while finding the best price possible for your policy.
It’s a win-win!
Give us a call at Mitch if you’re wondering if it’s time to start shopping for a new policy or you need some extra assistance on your journey. We’re here to help.
