When to Take a Second Look at Your Policy

Picking the right insurance policy takes time and once your policy is purchased, it is important to reevaluate your coverage once or twice a year. Regularly reviewing your policy and updating it as needed is smart since the many factors that play into your premium payments can change over time.

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When your family situation changes.

If your family situation has changed, you may need to change your car insurance policy too. Got married? Adding your spouse to your policy can increase or decrease your payment, depending on their driving record and discounts available for multi-driver policies.

If your teen starts driving, adding them to your policy will typically increase your rates. Teens, given their driving experience, are notoriously less safe drivers. However, in some situations, you may be able to take advantage of certain discounts applicable for students with good grades.

Keep in mind that most insurers need to know about all drivers in your residence. However, this doesn’t mean that every driver who lives in your home needs to be on your policy. You typically have the option to exclude them.

When you buy a new car.

If you bought a new car with financing, you likely purchased the necessary coverage (usually comprehensive and collision) if such coverage is required by your lender. *It is  not a legal requirement and varies lender to lender. You may also want to consider gap insurance. Gap insurance may help you pay off your loan in the event your vehicle is totaled and the value of your car is less than the amount your owe on your loan. 

If you did not finance your vehicle, the type of coverage needed varies based on your individual circumstance, value of the vehicle, etc. If you purchased a valuable car without financing, it’s not a bad idea to purchase more coverage than is legally required to ensure you are protected in the event your car is damaged.

When your premium increases.

Sometimes, your premium may have gone up while your driving record has not changed. This can happen for reasons outside of your control. For example, if your insurance company determined that your zip code has become a higher risk, you may see a rate increase. High risk factors are out of the control of the insured, and may include an increase in claims, thefts, and/or vandalisms in your area. In addition, rates tend to fluctuate due to the changing costs to repair vehicles, health care costs or the uninsured rate in your area.

Just remember, if you experienced any life changes or milestones, call your insurance company for a policy review. One call phone call could help you save on your insurance policy. Already insured with SafeAuto? Give us a call 24/7 at 1-800-SAFEAUTO (1-800-723-3288) as we’ll be happy to review your policy and coverages with you anytime.

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