When it comes to insurance policies, it’s easy to “set it and forget it”. We turn on autopay and auto-renewal and feel secure in the knowledge that our coverage will remain intact indefinitely. This is a big reason why many people stick with the same insurer for years. But insurance pricing changes constantly, and you could be missing out on savings by not looking at different carriers. Busy military families may be particularly vulnerable to overpaying for coverage.

When should you shop for new insurance coverage? A typical answer is “before your policy renews,” but that is not necessarily true. Switching insurance companies often is the result of major life changes. This article will help you leverage the churn of military life to help save you money.

In the military, loyalty is a core value. The same can’t be said for insurance companies.

Truth is, carriers change pricing frequently, and loyalty is rarely rewarded. 

“Insurance pricing reflects evolving risk conditions, including catastrophe losses, inflation, repair costs, and reinsurance expenses. Because of this, rates are regularly updated, and long-term loyalty doesn’t always result in lower premiums,” said Janet Ruiz, Director of Strategic Communication for the Insurance Information Institute, in an interview with TWM.

Fortunately, comparing price quotes from several different carriers could pocket you some serious savings. How much? While the experts differ in their answer, the consensus is that it’s a substantial sum.

“A comparison of auto quotes can result in drivers possibly saving $400 to $800 per year,” said Rami Sneineh, owner of Insurance Navy Brokers. “And home insurance policyholders can typically pay 15% to 25% less in premiums by shopping around.”

Nathan Haas, a personal finance coach who is currently in the Air National Guard, says one of his clients switched all of his vehicles to a different insurance company, which reduced his rates by nearly $400 a month. This is an unusually large savings amount that may reflect multiple vehicles or prior overpricing. Drivers can realistically expect to save several hundred dollars annually.

“Even renters can benefit here, perhaps by saving up to $100 a year,” Haas said.

Of course, the savings you net will depend on your eligibility for different discounts.

A Consumer Reports survey of Americans last year revealed that switching car insurance yielded a median annual saving of $461, nearly a third of the median premium. Just over 40% of those who switched auto insurance saved at least $500, and those paying the highest premiums saw median savings of $922 annually, with 13 percent of all switchers saving $1,000 or more.

How Often Should You Shop for Insurance?

The pros recommend reviewing and comparing policies at least once a year, or whenever there is a major life change. Doing so can help coverage remain appropriate and competitively priced.

“I would shop auto insurance every six to 12 months, and shop homeowners or renters insurance before each renewal,” said Dennis Shirshikov, an adjunct professor of economics and finance at City University of New York/Queens College. “Rates change often, and a simple comparison prevents a family from carrying an outdated price into the next policy period.”

Even if you don’t ultimately switch carriers, garnering premium quotes will ensure more competitive pricing.

Aside from the general recommendation of insurance shopping every six to 12 months, it’s also a good idea for military members to perform this due diligence at other intervals, as necessary. Here’s a breakdown of life circumstances that warrant fresh quote gathering.

PCS (Permanent Change of Station) Moves 

Your location is one of the biggest pricing factors that an insurer will consider. If you plan to move to another state, that can significantly change the rate you are charged.

“Changing states can change your auto insurance rate by hundreds of dollars. Before a PCS relocation, be sure to obtain new insurance quotes,” said Sneineh.

This happens because insurance prices are calculated based on risk assessment. And some areas have a higher likelihood of policyholders needing to make a claim. For instance, if you live in a city where cars and homes are often broken into, expect to see higher renters or homeowners insurance rates.

“Think about areas with a higher occurrence of natural disasters, or when you live in a highly populated area, which can lead to more car accidents. Maybe your current carrier’s risk assessment calculator says the risk is higher in your new PCS area than a competing insurance company,” said Haas.

Moving into or out of Military Housing

Moving into or out of military housing can change your insurance responsibility and risk profile. In military housing, the government or a private partner typically covers the structure itself. However, residents are often required to obtain a separate, dedicated renters’ policy to safeguard their possessions and provide liability protection, which may not be included in the basic housing agreement. So if you plan to move off-base and rent a property, it’s crucial to obtain adequate renters insurance. Conversely, if you move onto an installation after having lived in civilian housing, you can’t assume you are covered.

Also, give thought to other risks and gaps that can leave you financially vulnerable. For example, household goods in transit or storage needed during a PCS should be adequately protected. Check, too, that your policy provides replacement cost coverage instead of merely actual cash value reimbursement. 

Buying or Selling a Home

If you plan to purchase a home, it’s essential to have sufficient homeowners insurance coverage in place. The same goes for tenants and those renting while they transition to first-time homeownership or their next home. A renters insurance policy will safeguard your belongings and provide some liability protection during this transition. 

There are also opportunities to bundle policies under one carrier and earn a discount. Case in point: having an auto policy, homeowners policy, and life insurance policy with the same insurer can likely shave serious dollars off your total costs.

Buying or Selling a Vehicle

Planning to acquire or unload an automobile? The make and model of your next car can significantly impact what you’ll pay for insurance. Take the time to shop around and obtain several rate quotes before committing to your next vehicle so that you know what you can expect to pay for coverage.

Adding or Removing Drivers

Planning to get married? Have a teen driver who’s ready to earn their driver’s license? Adding another driver to your policy can lead to a steep jump in premiums. On the other hand, if a family member moves out and is no longer on your policy, you stand to reap notable savings.

“This is a big one, especially when it comes to kids. They can easily double your insurance amounts,” said Haas. “By switching insurance companies, you may get a new, lower rate, which can help offset the increased cost of adding a teenage driver to your insurance.”

Deployment or Vehicle Storage

If you’ve been deployed, and your vehicle will be sitting idle, you can decrease your insurance bill by changing your policy to reflect the car’s storage status. You can opt for comprehensive-only or “storage” coverage if you won’t be driving; this removes costly collision and liability protections but still keeps the auto protected against fire, weather damage, and theft. The premium savings could be substantial. 

But it’s important to contact your carrier prior to being deployed so that you can ensure this change is properly documented and verified that your car remains covered while sitting in its particular storage location. 

Major Life or Financial Changes

Other significant life or money changes can also affect your insurance risk profile and lower your insurance rates. These include: 

• An improved credit score 
• A shorter work commute
• Getting older – typically, rates drop gradually through your 20s assuming a clean record
• Retiring
• Switching to a lower-risk job or profession 
• Paying off an auto loan (eliminating the lender-required comprehensive and collision coverage if appropriate for your vehicle’s value)
• Earning a degree
• Having your college student live away on campus without a vehicle
• Completing a defensive driving course
• Installing a home security system

Why Insurance Rates Change Over Time

It’s little surprise that insurance premiums adjust over time, trending upward in most cases.

“That’s because insurance rates reflect broader economic and environmental trends, including rising construction costs, increased weather-related losses, and supply chain pressures,” said Ruiz.

Varying inflation rates, regional accident trends, and unique risk models from insurer to insurer can also play a role in pricing.

“Your rate can rise even if you’ve never filed a claim,” said Brad Cummins, independent insurance agent and founder of Insurance Geek. “Increased reinsurance costs after catastrophe years, larger court verdicts in liability cases, and carriers adjusting based on claims experience in your specific area also have an impact on rates.”

It’s simple math: Carriers will raise rates to offset the loss of profit they are observing in a particular area.

“Also, when you begin with a new insurance company, they may provide discounted rates to attract you, which is normal for the first year. Then, after that time is over, your rates will increase because you lose that discount,” said Haas.

When Switching Insurance Companies Makes Sense

It’s a smart idea to consider replacing carriers when the time is right.

“Switching can make sense when another insurer offers equal or better coverage at a lower total cost, which you won’t know unless you shop around,” said Shirshikov. “It can also make sense after a PCS move because the strongest carrier in one state may not be the strongest carrier in the next state.”

If you are dissatisfied with your current insurer’s customer service, that could be a strong enough trigger to jump ship, as well.

“Or, if an insurance claim has dropped off your record, which can take five to seven years, or your credit has improved significantly, you should shop immediately,” said Cummins. “And a rate increase that is not triggered by a change in your risk profile is another clear signal that it’s time to price competitors.”

Just be aware that switching could result in a cancellation fee charged by the insurer if you cancel your policy before its term expires. Thankfully, most insurance companies permit you to switch for no charge. But if you are charged a fee, it will likely range between $25 and $50. However, some carriers assess a penalty equal to 10% of your remaining prepaid premium. Check with your agent/company and confirm if and when a fee applies before making the switch.

When You Might Stay with Your Current Insurer

“Remaining with your existing insurer can make sense if you benefit from bundling discounts, loyalty programs, or strong claims service and coverage stability,” said Ruiz.

If you have a policy with accident forgiveness included, that’s a valuable perk you may not want to give up. And if you had a recent at-fault claim, your next insurer will be aware of it, which means switching in this scenario may not save you any money.

“If your pricing won’t change much at all, it is almost always better to stay with your current carrier. When you shop for insurance, one of the things companies look for is how long you have been with your last carrier and how long you have had continuous insurance coverage overall,” said Haydn Sessions, owner of Sessions Insurance. “Generally, the longer you can stay, the better.”

How to Shop for Insurance the Right Way

To improve your odds of landing a better deal and ensuring appropriate protection, follow these recommended steps:

1. Compare multiple quotes from different insurers.
2. Make sure coverage levels and deductibles are comparable. “Have your current declarations pages in front of you, and request quotes using the same limits, deductibles, endorsements, address, drivers, and property details,” said Shirshikov.
3. Inquire about discounts. There are discounts for being a veteran or service member, and having things like multiple policies, a security system, and a safe driving record.
4. Ask key questions. “Find out what’s allowed and covered when it comes to deployment storage, replacement cost, flood or wind needs, cancellation timing, and whether the new policy starts before the old one ends,” said Shirshikov.
5. Review the insurer’s financial strength and customer satisfaction ratings carefully before switching.
6. Use military transitions to prompt you to shop around. If you have to move every few years, take advantage of these times of change and potentially save money.

When shopping around, you also want to steer clear of common errors that many policyholders make, including:

• Choosing coverage based only on price
• Letting policies lapse during transitions between carriers
• Failing to disclose accurate information
• Not updating coverage after life changes
• Lowering coverage to save money, which could leave you financially vulnerable in the event of a loss
• Switching too frequently without evaluating coverage carefully
• Insuring a home for actual cash value instead of replacement cost coverage
• Not inquiring about every possible discount
• Assuming one carrier is always the best without actually comparing all the factors, including coverage limits, deductibles, exclusions, service reputation, discounts, claims process, and whether the policy fits your PCS or deployment situation.

Special Considerations for Military Families

Military families commonly deal with frequent or unexpected relocations, multi-state insurance requirements, and deployment-related adjustments. That’s why regularly reviewing your policy and obtaining competitive price quotes is strongly recommended.

“Active duty members often move every two years or so and frequently experience major life events,” said Haas. “Any number of these will change their risk profile, either up or down, so it’s wise to shop around for new insurance after each significant event.”

When gathering price quotes, confirm how each carrier handles PCS moves, garaging address changes, vehicle storage, deployment periods, renters coverage in military housing, and state-specific insurance rules.

“Also, remember to keep your insurance coverage active during transitions,” said Shirshikov, “because a gap can create higher rates and claim problems later.”

The Bottom Line

Shopping around for insurance is one of the easiest ways to save money, especially for military families whose lives change frequently. To spend less on premiums without sacrificing crucial coverage, make the effort to price around among several different insurance companies, and repeat this practice on a regular basis, at the very least before renewal time.