Becoming an Adult

Becoming an Adult

What to Evaluate When You Renew Your Auto Insurance

Robin King

Auto insurance coverage typically runs for one year. A lot can change in one year, so you shouldn't renew your coverage automatically at the end of the current policy. Here are some of the things to evaluate before you renew your auto insurance coverage.

Coverage

Review your coverage to confirm whether you still need the same coverage or you should modify your coverage. For example, it's advisable to increase your coverage limit if:

  • You now have a teenage driver in the house (teenage drivers increase liability risks).
  • You have married someone with a poor driving history, and they have increased your liability exposure.
  • You have increased your assets, and you risk losing them if you get sued.

Alternatively, you may have to lower your coverage if:

  • Your car's value has dropped significantly.
  • You don't drive as much as you used to do.
  • You have moved to a safer neighborhood.

As you can see, lots of things can change your coverage needs. Therefore, you may end up with the wrong coverage if you renew your policy without review.

Discounts

You also need to review the available discounts to identify the ones for which you qualify for. Ask your auto insurance company or talk to your insurance agent for a list of all the potential discounts you can get. The type of discounts for which you can qualify may change with time and changes in your life circumstances.

For example, you may qualify for some discounts if you have bought a house, gotten married, or reduced your annual mileage significantly over the last year. Get all the discounts possible to reduce your effective rates.

Drivers

The drivers in your household also affect your car insurance. The ages, driving histories, and even marital statuses of drivers in your household affect your car insurance rates. Therefore, your policy should always reflect the true nature of drivers in your household. Even your auto insurance company expects you to keep them updated on this information.

Rates

Lastly, you don't have to deal with the same auto insurance company year after year. You can switch auto insurance carriers if you find another one with better offers than your current carrier. The best time to switch carriers is during policy renewal.

It's clear from the above discussions that the automatic renewal of your auto insurance policy can cost you. Make it a point to go over your insurance every time you want to renew your policy so that you have the best insurance each year.


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About Me
Becoming an Adult

After I graduated college, I started to feel like an adult. I started teaching at a school. I also bought a car. And I became the owner of several insurance policies. I obtained a comprehensive insurance policy for my car. I also secured my first life insurance policy at this time. I didn’t want my family members to be burdened with funeral costs if I suddenly passed away. A few years after graduating college, I became a homeowner. After this joyous occasion, I invested in a homeowners insurance policy. On this blog, I hope you will discover the most common types of insurance people purchase.