Watching Your Wallet: Check your auto insurance

Watching Your Wallet: Check your auto insurance
Published: Aug. 16, 2021 at 8:35 PM EDT
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Most of us don’t do it, but it’s a good idea to check in on your auto insurance once a year to see how much you are spending. Ben Moore, an Insurance Specialist with NerdWallet, says shop around because prices could change.

“Auto insurance prices are likely going to rise,” Moore said. “Auto insurance companies were providing discounts for customers during the pandemic because they were driving less but because people are driving more and it was such a rough year in 2020 auto insurance rates are expected to rise.”

There are so many factors that go into a rate quote. Location is a big one, living in a city versus living in less populated areas. Credit history is another factor that could affect your rate. Rates also vary from state to state because of regulations.

If you’ve recently let your insurance lapse, meaning you’ve gone without insurance for certain amount of time, that could also mean you pay more.

Moore said, “Even if you don’t own a car, you might be labeled a high risk driver, which is also going to affect your rate.”

How much you drive, how far you drive and even what type of car you drive goes into the algorithm. That determines how much you pay. So, it’s a good idea to see what all the major players will offer you.

And don’t forget to check in on those smaller, lesser known insurance companies: You might find a deal there.

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