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Did your insurance agent tell you that the rates can change daily? Can Car Insurance Quotes Change Daily? We are going to find out if car insurance quotes can change daily. Read the whole article to find out and start saving money!
What Car Insurance Is Based On?
Car insurance is primarily based on the car you’re insuring, length of clean driving history, the age, gender and marital status of the driver, the driver’s driving record and credit score. The type of car you drives tells the insurance carrier a lot about you. If you are driving a sports car, you probably are more likely to speed. If you drive a VW Beetle, you may not be as likely to have an accident. The value of your car can change your rates too. This is especially true with full coverage insurance. How long you have been a safe driver is a huge part of your car insurance quote changing. If you have a clean history for 5+ years, you’ll pay less for insurance. If you got into an accident yesterday, your rate will go up.
Because you don’t know exactly what the future holds, your driving record could change by tomorrow. I know, it sounds crazy but you never full know what is going to happen. Your age, gender and marital status are some of the primary demographics they use in giving you a quote. These aren’t too likely to change in a day, however. Your credit score may actually change, for better or worse, tomorrow depending on what accounts report. A few extra months of on time payments can keep your rate from going up. But, if your utility bill is late or a bill goes to collections, your rate may go up by the following day.
Be sure to read my article about how to get the lowest possible insurance quotes!
Yes, Car Insurance Quotes Can Change Daily
Car insurance quotes can change all the time. Nothing stops the company from changing rates when you hang up the phone, close the browser window or even before either of those. Usually, the rates actually change based on new information. That new information can be something that comes up when they run your driving record. It could also be new information the insurance company gains about the area where you live. If you think about it, car accidents happen every day. If the insurance company knows that yesterday more accidents occurred in your area than normal, it may predict that this trend will continue. This would indicate that insuring you would be riskier. In order to minimize their risk, they would increase insurance premiums.
The question then becomes how often do the car insurancecompanies get new information? Since accidents happen everyday, it is save to assume that the larger companies get new information concisely. The information is then crunched by the underwriting department. Therefore, the bigger the company, the more likely it is that the car insurance quote can change daily.
My experiences with changing rates.
Personally, I have found that rates usually stay the same for about a week. After a week or so, it becomes more likely that those rates will go up. That being said, any change on your driving profile can change things immediately. Because there is uncertainty in your car insurance quote, go ahead and get insurance as quickly as you can. If you’re not ready to pay for insurance right now, Root Insurance gives one of the most stable quotes I have ever seen.
Adam is a license Property and Casualty Insurance Agent for over two years in 25 States. He has worked with 10 different insurances companies. His interests include marketing, insurance, sales, and personal finance.