How often should you change car insurance? Most drivers get this wrong

According to the Bureau of Labor Statistics, average car insurance premiums shot up 55% between 2020 and 2025. While the bulk of that increase occurred between 2022 and 2024, rates are showing no sign of slowing down.

Many drivers pick a provider when they buy a car and just stay with it. But comparison shopping is a great way to see if you're getting the best deal. According to a 2024 report from insurance marketplace Jerry, more than one in five (22%) customers said they switched auto insurers to take advantage of lower rates.

Find out how often you should get rate quotes, what to look for and how to switch insurers.

You should comparison shop every time your policy is up for renewal. In some cases, that's every 12 months, but a growing number of companies are switching to a 6-month policy term. Since they can't adjust your rate before renewal, providers are turning to a shorter-term model to speed up how often they can hike prices.

Don't wait until your current policy is about to lapse, however, since you want enough time to set up continuous coverage. You should be able to set the date when your policy starts and many insurers offer a discount if you enroll before your current policy expires.

Geico's early shopper discount is worth up to 15%, and drivers who sign on with Travelers before their current policy runs out can save up to 10%.

When there are life changes, it's worth checking whether it's time to update your car insurance, too.

If you're moving

Whether it's to another part of the state or across the country, moving can impact your premiums. Insurance companies consider average rates in your region, how much crime there is, the frequency of severe weather and other local factors.

On the plus side, many insurers offer a discount to homeowners — especially if they have a garage. If you get homeowners insurance from the same company providing your auto policy, you may qualify for a bundling discount

If you get married

In most U.S. states, insurance companies can charge lower rates to married drivers because they statistically get into fewer accidents. In fact, married couples pay an average of 15% less than single, divorced or widowed drivers.

Many insurers require all drivers in a household to be listed on a policy. You can sometimes exclude your spouse, but they wouldn't be covered if they drove your vehicle. You'd also miss out on any multi-vehicle discount.

If you add a new driver

If your son or daughter has gotten their license, it's time to go insurance shopping. Because they've spent less time behind the wheel, teenagers are the most expensive demographic to insure, but we found that State Farm and Travelers have some of the lowest average rates for households with teen drivers.

If you buy a new car

The make, model and age of a car have a major impact on insurance premiums: Some carriers offer discounts for newer cars (typically those under three years old), as well as for having certain safety and security features.

On the other hand, luxury vehicles usually come with higher premiums, and some providers refuse to insure certain models that are known to be easier to steal.

If you've improved your credit score

In most states, insurers can consider your credit score when determining your premiums. If you’ve been working on increasing your score, it could pay to shop around and see if a competitor has a better deal.

If your driving record changes

Your premiums can skyrocket if you receive a speeding ticket, are held liable for an accident or are convicted of driving under the influence. There are providers that specialize in insuring high-risk drivers, including Dairyland and First Acceptance.

Progressive's rates for drivers with DUIs are well. below the industry average.

Most car insurance companies allow you to get an online quote to compare rates anytime you want. You'll need to provide some basic information on yourself, any other drivers on the policy and on the vehicle itself:

• Your gender, age and marital status
• Your primary address
• The average number of miles you drive annually and the purpose (commuting, pleasure, etc)
• Your driving history, including any tickets, violations or accidents
• The make, model, and VIN of any car on the policy

If you're approved, you'll need to choose the kind of coverage you want.

• Liability coverage: Most states require motorists to have a minimum amount of liability coverage to pay for damages or injuries to others, but you'll want more than that to ensure you're protected if you're held responsible for an accident.
• Comprehensive and collision coverage: While not required unless you're still paying off your car, full coverage will reimburse you for repairing or replacing your vehicle. Choose comprehensive and collision coverage that covers your car's total value, as determined by sites like Kelley Blue Book.

You'll also choose a deductible, or the amount you'll need to pay if you're involved in an accident. While raising your deductible can lower the amount you'll pay for coverage, it should be an amount that you could easily afford.

To get a clear picture of the best option for you, repeat this process with at least three insurance companies that issue policies in your state.

If you've decided on a new provider, there are a few steps to making the switch:

1. Check your current policy's renewal date: You can find it on your insurance card and other documentation or by checking on your provider's website.

2. Schedule your new policy to start: To keep continuous coverage, you should have your new policy start on your old policy's renewal date. (Even a one-day lapse in coverage can result in higher premiums.)

3. Finalize your new policy: You'll set up your payment method, sign your policy and get new proof of insurance.

3. Make sure your old policy doesn't renew: Let your old car insurance company know that you won't be renewing. This can usually be done online or over the phone. You may also want to remove your payment method to prevent being charged again.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed financial decisions. Every insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

Catch up on CNBC Select's in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.