Tune-Up Your Auto Insurance Policy


It’s always a good idea keep your auto insurance as current and up-to-date as possible. If you’ve had your insurance policy for two years or longer, then it’s time to search around to see if there are any cheaper rates for the same coverage you currently have. A lot of people stick with the same insurer for years, even decades at times. Many of these individuals are over-paying for coverage that are now cheaper. This is also a good time to see if you have all of the coverage that you need. The benefits you no longer need should be removed as well. Most people review their insurance policies during National Car Care Month that takes place in April and October. Looking over you insurance policy periodically is like boosting your car’s performance with period maintenance.

Detail Your Insurance Policy

Some of the changes that you go through in life could mean that you need to make some changes on your auto insurance policy. If you look at your policy, there is a very important summary on the Declarations Page about coverage limits, policy terms and who or what is covered. By updating this information every so often will ensure that you changing situations doesn’t cause you to miss out on coverage you have. For instance, if you have additions to the family either through marriage or birth, you may need to add people to your coverage to ensure that they will be protected in the event of an auto accident. Updating your policy doesn’t only affect benefits, it can also affect price (either for the good or for the bad). Another scenario is if you were to move from the urban crowded city streets to a quiet rural area; this would cause your rates for collision coverage to drop some because of decreased traffic and chances of getting into a car accident.

Roadmap Your Insurance Policy

Each state has different minimums and requirements for auto coverage. Depending on where you live will determine what coverage and how much coverage you can purchase. When deciding this, you should be thinking about the value of your vehicle, your age, area you live in and other assets you may own. There are four main types of coverage options in question:

Liabilities offer you financial protection from accidents that can injure or damage a person or their property while driving your vehicle. The more assets you gain, the more important it is to purchase more liability coverage. By not doing so, you could risk your more valuable assets like your home, which could be seized if you are unable to pay for your liabilities in an auto accident you’re responsible for. Judgment could be placed against you in this matter. Medical bill coverage is another form of protection you should keep in mind. This is a type of policy everyone needs regardless of being at fault of an accident or not. With it, your coverage will cover any medical expenses that occur during an auto accident.

One of the more important options is uninsured and underinsured motorist protection. This will protect you from financial ruins in the event of getting into an auto collision with another driver that is uninsured or unequipped with sufficient protection to cover the expenses. This leaves you without money to pay for your expenses and you may not see any money for years to come, unless you have this coverage. Collision and comprehensive coverage, also known as full coverage, gives you lots of protection as well. In the event you are in an accident that causes physical damages to your car, you will be covered under your policy with collision protection. Comprehensive coverage offers benefits for theft, vandalism and natural disasters (floods, fires and high winds). The amount of benefits you receive depends on the amount of limits you purchase.

It may not be worth getting comprehensive coverage if you’re vehicle’s value is close to the deductible you have to pay. You’ll be paying this without the coverage, so why pay more for a monthly premium that won’t provide you any benefits for the loss, vandalized or damages caused by natural disasters to your automobile? It is very important to do routine maintenance to your auto insurance policy to ensure that you’re getting the benefits you need in this point in your life. Make sure that you understand your policy and update it as needed whenever you feel is necessary.

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