How To Review Your Current Auto Insurance Policy

So many drivers choose to stop thinking about their auto coverage the minute they purchase their policies. Many others don’t think about their policies until something like adding a new teen driver or buying a new car requires them to think about their coverage.

However, never thinking about your policy, or only thinking about it when a significant change takes place, could prevent you from saving money or having the right kind of coverage.

 

7 Factors to Consider When Reviewing Your Car Insurance Policy

1) Drivers Covered

Now that some time has passed since you first bought your policy, there may be fewer or more drivers in your home. Talk with your agent about making sure you have the right amount of auto insurance policy coverage if any of the following changes have taken place:

• You got married or divorced.

• Someone formerly on your policy is now deceased.

• A teenager started driving, or your child bought his or her own insurance policy.

2) Vehicles Covered

Vehicles change, too, and it’s important to make sure you still have the right kind of coverage.

If you bought a new car with the help of an auto loan, you can bet your lender made sure you have the right kinds―and amount―of coverage.

However, if you bought a vehicle with no financial assistance, or your same ol’ vehicle has gotten on in years, you might not need the same types and amounts of coverage. If you want to save some money, talk with your agent about whether downsizing your policy is a safe idea.

3) Coverage Types

Naturally, if you’re reading about how to review your auto insurance policy, you have an insurance policy and it meets your state’s liability insurance requirements, at least.

(We point this out because not all states require liability coverage, and some offer alternatives to auto insurance such as posting surety bonds or cash deposits.)

Anyway, you still have to meet the state minimum (or opt for the alternative, if there is one in your state), but depending on how your circumstances have changed, you might want to tweak your coverage.

For example, you might want to:

• Add collision and comprehensive if you bought a valuable car or added a teen driver. Or, you might want to get rid of those coverage types if your car’s getting on in years.

• Add emergency roadside assistance if you or someone in your family (say, a college student) started traveling a lot.

• Add gap insurance if you just purchased or leased a vehicle, or drop the coverage if you paid off your loan or no longer lease.

Talk with your agent about any changes in your vehicle(s) and drivers to find out if there are any coverage types you should have―or no longer need.

4) Claims Processes

Even if you’ve never had an auto accident or done so much as back into a neighbor’s fence, understanding your car insurance provider’s claims process is crucial.

To refresh, sit down with your policy paperwork and read up on how your provider handles claims. Or, visit your provider’s website; many include instructions on how to file car insurance claims and even systems to allow you to file online. Of course, you can always contact your agent, too.

Don’t be satisfied until you know:

• The exact steps you’re supposed to take immediately following the accident (or whatever event led to damages).

• Whether you’re supposed to file and obtain a copy of a police report.

• How long you have to file the car insurance claim.

• When, and where, you should take your vehicle for repairs.

• How long you can expect to wait for reimbursement.

• How filing a claim will affect your auto insurance rates.

5) Income Changes

This one’s pretty simple: The more money you make, the more coverage you might want to purchase; the less money you make, the more downsizing you might want to do.

Just make sure you keep enough coverage to meet your state’s requirements and protect your assets.

6) Discount Status Changes

Have you (or your teen) taken a driver training or drivers education course since you first bought your policy? Has the number of annual miles decreased? Did someone retire? Did you install any anti-theft or other safety devices?

These are all common types of auto insurance discounts most providers offer. Visit your company’s website or speak with an agent specifically about the discounts available and which ones you might now be eligible for.

7) Other Coverage Needs

Have you purchased a home since you bought your auto insurance policy? What about a motorcycle, boat, or RV? Most car insurance providers offer multiline discounts, which means you could save money if you insure your home and/or any other vehicle you own through the same company.

Of course, if you were already taking advantage of this discount but you’ve since sold your home or no longer own the motorcycle, boat, or RV, you’ll want to make sure you dropped it from your policy.

 

Making Changes to Your Auto Insurance Policy

Typically, it’s pretty easy to make the necessary changes to your auto insurance policy coverage. Your provider might allow you to make these changes online via your customer account, or you might visit or make a phone call to your insurance agent for a quick policy spring cleaning.
If things start to become a hassle though, or if your company doesn’t offer discounts other companies say you should have, consider shopping for a new insurance provider. Switching carriers is usually pretty easy; just make sure you don’t cancel your current policy until your new one is in place.