According to studies, only about 33% of drivers renew their auto owners insurance policy. Additionally, these drivers do not really go out of their way to find out if their policy is up-to-date with the current trends in the insurance world.
Actually, getting yourself to regularly review your auto owners insurance is a good thing. For starters, this will help determine if the provisions of your policy still suit your needs. It will also help you pinpoint one or two areas that may not be in your favor. This will serve as reference points when asking for better terms once the renegotiation period comes around.
The most appropriate time to review insurance policies is when these are nearing their expiration dates. Another good time is at the start of a new year.
Apart from that, there are a few other occasions when reviewing auto owners insurance becomes imperative. Below are the more common ones:
*High gas prices. Regular increase in oil prices can force you to take out your car less often. This will then result in less driving mileage for you. This is one factor that insurers consider when computing monthly premiums. Suffice to say that less mileage means lower insurance rates.
*Additional vehicles. Obviously, an extra vehicle will require additional coverage. This is particularly true if the added vehicle is a specialized type (e.g., an RV). In such cases, it is always better if you consult your insurance provider and find out if these vehicles are included in their coverage plans. Additionally, ask your insurer if discounts can be availed of. Some providers have discount programs for customers who own multiple vehicles.
*Increased premium rates. This is sometimes resorted to by several insurance firms. If this is provided in your policy, just try to find out why the increase was implemented and if this will affect your present coverage.
*Age. When you reach a certain age, your driving assumes a less risky stance. Most insurers realize this and offer you lower premiums. Typically, 26-year-old drivers are seen as more responsible and less adventurous.
*Change in driving lifestyle. Embarking on a new career often requires you to have more high-end cars. This will obviously result in higher premiums for you.
*New offers. Insurance companies regularly offer discounts and incentives to its loyal customers. Keep yourself updated so you can avail of new offers that can result in more affordable insurance packages.
In summary, even if your present auto owners insurance has provided you several favorable terms, it does not mean you should be contented with these. Changes that can affect insurance packages will eventually come. When they do, renegotiation for better deals should be considered.