Figuring out the Right Time to Review Your Auto Insurance Policy

Many people experience changes in their auto insurance needs over time. Perhaps there have been changes in your life that have caused you to assess your coverage. Timing is important because you want to keep your coverage as up-to-date as possible.

Reviewing your auto insurance coverage can be a time-consuming process. However, you must take your time to get the appropriate changes added to your policy. Here are some general life-altering situations in which you may have to change your auto insurance policy.

Purchasing a Car

Purchasing a new car is the perfect time for you to review your auto insurance policy. In addition to age, the make and model of your vehicle will also impact your auto insurance rates. If you purchase a high-end vehicle, it will cost more to insure it because the costs to repair it are significantly higher than an average vehicle. The number of miles you drive will also impact your auto insurance rates. If you plan to put many miles on your vehicle, you may be considered a high-risk driver.

You can also consider adding extra coverage to your existing policy. For example, uninsured motorist coverage will help pay for damages if you are involved in an accident with someone who does not have insurance. Collision coverage protects you if you hit an object. You should also consider adding emergency roadside assistance to cover you if your vehicle suffers a flat tire or you run out of fuel. It is important to make sure that you have enough coverage to protect your new vehicle fully.

Getting Married

Getting married is a life-altering experience. While you are full of joy and happiness, you’ll also have to make some important decisions. You and your spouse will likely have to assess your financial situation moving forward. You might also intend to add your spouse as another driver on your auto insurance policy. Research shows that getting married can help improve your auto insurance rates because married people are generally considered safe drivers. Update your coverage to see if you qualify for a potential discount.

Moving

If you have recently moved to Lancaster, CA, research the local laws to see if you need to adjust your coverage. Look at the local requirements. Perhaps it is mandatory for all drivers to have no-fault coverage that will pay for their medical bills if they are involved in an accident, regardless of who is at fault. Contact your insurance provider as soon as you are settled so that they can assist you with the details. Your location may also impact your auto insurance rate. If you move to an urban area, your rates may rise because of a higher risk of your vehicle getting stolen or vandalized. If you choose to stay in a rural area, your auto insurance rates will decrease because there is less crime risk.

Teenage Driver

If you are the parent of a teenage driver, make sure to review your policy before adding your teenager to it. Adding a teen driver might require you to increase coverage because teen drivers are generally viewed as high risk. It may be a good idea to raise your deductibles which will increase the amount you’ll have to pay out of pocket if your vehicle is damaged. However, the savings could help reduce the financial strain of adding a new driver.

Periodic Assessments

Try to review your auto insurance every year. This will allow you to list any changes that you may have forgotten about. Also, make sure that your provider informs you about any potential discounts that you qualify for.

While reviewing your auto insurance coverage on a regular basis may seem unnecessary, it can help you save money in the long run. If you have any questions related to auto insurance, contact the team at John E. Peakes Insurance Agency. We are ready to assist you with all your coverage needs!

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