What You Stand To Gain By Reviewing Your Car Insurance Periodically
It's not a good idea to buy auto insurance once and then keep renewing it automatically without review. In fact, you shouldn't do this with any form of insurance. As far as auto insurance is concerned, the benefits of periodic review include:
Taking Advantage of All Discounts
Reviewing your insurance may help you to identify and take advantage of all the discounts you qualify for. It might be that a new discount has come into effect within the last year, or that you have qualified for a new type of discount that you could not enjoy in the previous year. For example, you may have crossed an age barrier that makes you eligible for senior-related discounts. Another example is a teen driver whose grades have improved within the last year or so; many insurers award grade-related discounts.
Adequate Coverage
If you don't review your insurance, then you may be having inadequate coverage without knowing. For example, you may have gained a new household member when your nephew came to live with you or your girlfriend/boyfriend moved in.
Reduced Rates
A coverage review can even lead to lower auto insurance rates. For example, it might be that one of your cars has gotten really old, you rarely use it and its market value has plummeted. It doesn't make financial sense to have comprehensive or even collision coverage for such a car. If you have multiple cars in your coverage, then you can reduce your premiums by dropping coverage for such old cars.
Other changes that may lead to reduced rates include:
- Installation of safety gadgets such as automatic seat belts
- Carpooling
- Shorter or infrequent driving
Spotting Mistakes
Lastly, an auto insurance review can also help you to catch mistakes that you would not otherwise know. Such mistakes may include clerical or judgmental errors. For example, you may find that a former household member who moved out of the house still has his or her name listed in the policy. Another possible mistake is a deductible that is lower or higher than the one you think you have or should be having.
Although it is good to carry out a review at least once a year, you should also do it if you expect a big change, for example, when you buy a new car. When reviewing your policy, don't forget to have a candid talk with your insurance agent. He or she will help you to understand what might have changed in the industry since your last review. For more information, contact a professional such as Jimmy Fisher State Farm Ins.
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