Quick Trick to Save You Money on Car Insurance

As the lead programmer of a car insurance search engine project, I have recently been assigned to investigate an interesting issue. A beta tester reported a bug - he tested the program and received his quotes on the last page on one day, and a week later, decided to drop his current insurance provider and switch to a company that gave him a better price. However, when he went back to his quotes again, the policy had a different price, an entire 11% higher than the quote he had on the first day he got his quotes.

After a several hours of looking for the bug in the programming, my frustration turned into intrigue. There was nothing wrong with the code itself, but rather, the aforementioned customer had discovered a little-known fact about the pricing practices of car insurance companies: a last-minute insurance policy will cost more - 8-12% more.

We are all familiar with this concept when booking a flight or a hotel room. When you book your seat or room ahead of time, you will pay less than you would if you wait until the day before your trip.

The same concept applies to buying car insurance. If you wait until the very last minute - that is, until the day your current insurance policy runs out - you will end up paying more. In our own research, we have found that people who leave insurance shopping until the last minute will usually pay 10% more for their auto insurance policy. Whether it is because the companies know you need insurance fast, or because it makes you seem less responsible, your policy will cost more.

In addition to saving money, buying an insurance policy ahead of time could save you problems with law enforcement - some insurance takes a few days to process, making it more difficult to prove you are currently insured if you get pulled over or into an accident and bought insurance the day of.

So if you are looking to save money on your next policy, plan ahead: shop around to compare quotes at least a few days before your current policy expires.

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