You should review your auto insurance regularly to ensure you always have the best policy possible. At the very least, review your insurance every time you want to renew your coverage. The review should cover all the major aspects of your policy, including these four critical ones.
Your coverage encompasses the risks your auto insurance policy protects you from. The major forms of coverage include:
- Liability coverage
- Collision coverage
- Comprehensive coverage
Determine whether your current coverage suffices or you need to change to coverage. For example, you should consider upgrading to comprehensive coverage if you currently have liability coverage only if you have recently upgraded to an expensive car.
Apart from the major categories of coverage, you should also review the add-ons (riders) you have or need. For example, consider roadside assistance coverage if you have taken up off-road driving as a hobby or if you enjoy road trips.
You also need to review your rates to confirm that you are not overpaying for your insurance. Insurance rates change all the time due to things like:
- Changes in residence
- Changes in marital status
- Changes in age
- Changes in annual mileage
So many things affect auto insurance rates; you might not even be aware of all of them. The best way to evaluate your rates is to request multiple quotes and compare the results to your current rates.
Even if your rates are relatively high, auto insurance discounts can help lower them. Thus, you should include a review of the available discounts whenever you evaluate your auto insurance. Maybe you have qualified for discounts that you couldn't get in the previous policy year.
For example, you may qualify for a discount after joining a professional organization. Some professional organizations have arrangements with insurance companies that give the members of those organizations discounts.
Lastly, you also need to review your coverage limits. Raise or lower your coverage limits if necessary. For example, you may need to increase your coverage limit if you have replaced your family sedan with a sports car. You should also consider higher limits if your teenage child has started driving. However, lower coverage limits may suffice if you have downgraded to a cheap car and you no longer drive as much as you used to do.
As you can see, the benefits of reviewing auto insurance coverage are huge. Don't forget to involve your insurance agent for a thorough review. Contact an auto insurance company in your area to learn more.