What Motivates Drivers to Buy New Auto Insurance?

13 May

Do you need a new auto insurance policy? Before you answer this question, think about the why’s behind it. If you’re considering a first-time or new-to-you policy, take a look at what motivates consumers to shop for insurance and how your reasons affect the insurance you need to buy.

First-Time Buyer

Are you new to driving? Whether you’re an adult who just passed their driver’s test for the first time or you’re a parent who needs auto insurance for your teen driver, shopping for a first-time policy almost always comes with questions. These may include:

  • When is coverage necessary? This depends on your state’s laws and the specific insurance coverage you need. In general, when a teen or adult becomes a licensed driver (and plans on driving a specific car), they need insurance.
  • Are there discounts? Insurance can get pricey for a new driver — especially if the first-time buyer is a teen. Talk to your agent about discounts or ways to decrease the premiums.
  • What type of policy is necessary? There are a variety of coverage types, depending on your or your young driver’s needs. Again, talk to the agent to learn more about the policy that works best for you ow your family.
  • Speeding isn’t something that only happens on the road. If your motivation for buying an auto insurance policy is a first-time license, slow down and take your time. Let the insurance agent act as guide to help you to investigate options.

    Switching Policies

    Why do insurance policy owners consider switching policies? Some of the most common reasons for shopping for new auto coverage include:

  • Price. Price is the top reason for switching coverage, according to a Facebook and comScore poll. If you’re not happy with the price you currently pay, you may have alternatives. This may include switching providers, deductible amounts, or amount of coverage.
  • Coverage. Does your policy cover enough? Or does it cover too much? Reviewing your policy can help you to determine if you need to switch to a new type of coverage that better meets your needs.
  • Service. Does your insurance company provide the service you need? If not, talk to a new agent about what you expect and what another option could offer.
  • Before you switch coverage or companies, fully review your current policy. You don’t want to pay more over time, be under-insured, or have to switch again within the next few months or years.

    New Life Event

    A major change in your life may require an insurance policy change. While there are plenty of events that can precede coverage changes, the top reasons include:

  • Marriage. Adding a new spouse onto your policy changes your overall pricing structure. Choosing a new policy may allow you to lower costs or increase coverage.
  • Divorce. Like marriage, a change in marital status affects your auto insurance (provided both you and your spouse are on the policy).
  • Moving. Moving to a new state may change the minimum coverage required. Talk to an agent about what you need to do to get the just-right insurance coverage.
  • Buying a new car. If you recently bought a second car, you’ll need to insure it.
  • Buying a new home. This may change the coverage you want for your car and may even affect the amount you pay.
  • Along with these life events, changes to your financial health may impact your auto insurance coverage — and the price you pay for it. These include, but aren’t limited to, paying off a loan, getting a raise at work, and raising/lowering your credit score.

    Do you need new auto insurance? Contact Family Insurance Centers for more information.