How to Switch Car Insurance the Right Way — and Why It Matters More Than You Think

Car insurance premiums have climbed sharply, with the average driver now paying over $2,600 per year. For many households, this is just one more rising expense layered onto higher healthcare, housing, and everyday living costs.

If your auto insurance rates continue to rise despite a clean driving record, you may feel stuck — but you’re not. You are not required to stay with the same insurer, and in many cases, you don’t even have to wait until your policy renews.

A recent Kiplinger article outlines how to switch car insurance thoughtfully, maximizing savings while avoiding costly mistakes.

Key Steps Before You Switch

Start with an apples-to-apples comparison Begin by getting quotes that match your current coverage exactly. This creates a clear baseline. Once you have that, you can explore changes such as raising deductibles or adjusting coverage on older vehicles.

Check for cancellation fees and auto-renewals Some policies charge early termination fees or automatically renew at the end of the term. Reviewing the fine print helps prevent paying for two policies at once or losing savings to unnecessary penalties.

Avoid Coverage Gaps

Your new policy should begin the same day your old one ends. Even a brief lapse in coverage can increase future premiums and create complications later.

Look for practical ways to reduce premiums Raising deductibles, dropping collision or comprehensive coverage on lower-value vehicles, claiming available discounts, or exploring mileage-based insurance options can all help reduce costs — when done carefully.

Understand refunds and timing If you prepaid your premium, you may be entitled to a prorated refund after switching. Knowing how and when refunds are issued can help offset the cost of a new policy.

A Bigger Picture Consideration — Especially for Seniors

While reducing premiums can be helpful, insurance decisions should never be made in isolation. For individuals approaching or in retirement, liability coverage and asset protection deserve special attention. Dropping coverage without understanding the financial risk could create unintended exposure.

That’s why insurance reviews are best handled as part of a broader annual financial check-up, alongside estate planning, healthcare planning, tax strategies, and cash-flow needs.

Rising insurance costs are often a signal — not just to shop for a better rate, but to step back and ask whether your overall financial plan still fits your current stage of life.

Rising costs — whether insurance, healthcare, housing, or taxes — remind us that financial planning isn’t a one-time event. It’s an ongoing process that works best when all the pieces fit together.

At Pelleton Capital Management, we believe thoughtful planning means periodically reviewing every part of your financial picture — not just investments — to ensure your strategy continues to align with your goals, lifestyle, and stage of life.

If rising expenses are creating questions or concerns, we’re always happy to serve as a resource and help you look at the bigger picture.

All the best, Charles

Charles C. Scott AIF®, CDP®

ACCREDITED INVESTMENT FIDUCIARY®CERTIFIED DEMENTIA PRACTITIONER®

Source: Kiplinger, “How to Switch Car Insurance the Right Way” by Daniel Bortz

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