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When your credit score goes up
We all know a low credit score can have a negative affect on your life. It means lower chances of getting approved for credit and higher interest rates on loans. But did you know many states take your credit score into account when calculating your car insurance rates? Yikes.
So if your credit score goes up — even one point can tip you over into the “good” or “excellent” bracket — you could be looking at a cheaper car insurance policy. Keep tabs on it (don’t pay to see your score, use a free website like Credit Sesame to monitor it) and if it improves, see if you can get a better rate with a new policy.
When you make big life decisions
And you thought getting married would be worse on your finances! But as it turns out, big life decisions, like moving to a lower-crime neighborhood, buying a safer car and, yes, getting married, can make you look good to potential insurers. Once you sign on the dotted line, you could be saving big bucks every month with a new car insurance policy.
The same cannot be said in the reverse. Unfortunately, getting a divorce, buying an unsafe car or moving to a higher-crime neighborhood can increase your rates.
When your state's laws change
This event is super random, and not something the average person would think about. But states can change laws regarding insurance at any time, and it’s usually not major news (think: minimum coverages, etc.).
Unless you’re specifically seeking it out, there’s no way for you to know about these changes. That’s why it’s smart to check out new car insurance options every couple of months, just in case. You could be eligible to change your coverage and pay less for it.
Car insurance companies will always be competing for more business, and with rates super low this year, due to lower car usage, you could qualify for some of the cheapest car insurance available. So whether one of these random events happened to you or not, it’s worth seeing what better options you have.
This article was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.