An insurance policy must be continually evaluated and re-evaluated, especially when it comes to the tax season. The best time to get the finances of your house in order is the beginning of the year. In the beginning of the year you have all your finances in front of you, and you can judge whether or not your auto insurance policy is doing what it should do for you.
Another time that an auto insurance policy may be reviewed is during renewal. A little before your policy needs to be renewed, compare with other companies; see if they have better deals on the same policy that you have right now, or whether they have better deals.
When to review a policy
- There’s something new: You should preferably review your insurance policy when the insurance company you’re with has something new to offer. There may be better deals, or discounts, so take avail of these advantages lest you miss out on them.
- You’re driving less: If you don’t really drive a lot, you should probably review your policy. Because of the increase in gas prices, the annual driving mileage of your vehicle might also have lowered, due to which some companies offer a discount for low mileage.
- Save: The biggest impetus for you to review your existing auto insurance policy is to save money. There must be sufficient coverage for assets, and see to it that the minimum requirements by law are met and kept. You may qualify for certain discounts, for which you will need to research first. For example, if you have more than one vehicle insured with the same company you are entitled to avail of a Multi Vehicle Discount.
- Specialized Vehicles: If yours is a specialized vehicle, you will definitely want to review your existing policy. Standard auto insurance will just not be bale to provide your vehicle with the coverage it is supposed to get. It doesn’t matter if it is a commercial vehicle or an RV, it still qualifies as a specialized vehicle, thus needing specialized insurance. You will need to check if specialized policies are offered by your current insurer. If your current company doesn’t have the provisions, move on to a company that does. By moving all auto insurance policies to a single company, you may qualify for a loyalty discount.
- You may be underinsured: Sometimes, in the course of a policy term, it may be realized that the coverage that you’ve had just isn’t enough. Being underinsured is a dangerous affair, if there is indeed a mishap, you’ll be paying from your own pocket, and still be paying the insurance company with no relief. Also you may just have undergone a lifestyle change which will require additional coverage for your vehicle.
- If you’ve kept your driving record clean: If you’ve kept your driving record absolutely clean over the past year, ask your insurance company if you can avail of a discount. Your clean driving record will speak volumes about your safety on the road as driver, and insurance companies will actually want to insure you.
The bottom line is that everyone must know their insurance policies inside out. You don’t just need to know what you’re paying for, but also what other services you may be getting free of charge.