Insurance specialists are advising car owners and policyholders to update their insurance policies to avoid unnecessary expenses and eventually save money.
According to experts, many policyholders who stay with the same insurance providers for several years fail to update their policies and coverage regularly. This has resulted in wasteful spending of money, especially if the car owners entrust their policies to company representatives.
For instance, a new car five years ago would be well protected if a car owner purchased comprehensive and collision coverage. Now, however, it would often be better for policyholders to pay for any minor damages from their own pockets, instead of buying addition coverage. If car owners have not updated their policy, then they would have spent thousands of dollars over the years.
Specialists also suggest updating car insurance coverage especially when a policyholder undergoes a lifestyle change. Insurers often base rates on several factors, including the occupation, location, and lifestyle of the policyholder. Failure to regularly update coverage can mean that a car owner would have to pay the same premiums when in fact, he or she could be eligible for discounts. A married man, for example, could be paying higher premiums because his insurance policy bought when he was still single has not been updated in years.
Motorists under the age of 25 should also make it a point to update their insurance coverage once they reach adulthood. Insurance providers usually slap high premiums on car owners aged 25 and below because of their relative inexperience when it comes to owning and driving cars. When they grow older and become more mature, however, they are entitled to better rates. Of course, insurers would never automatically update their policyholders’ coverage because doing so can mean a substantial loss of income. Because of this, it is up to the car owners to regularly check with their insurance providers and see if it is time for them to update their insurance policies.
Policyholders who take up defensive driving classes can also ask their providers to give them better rates and update their coverage. Car owners who have had brushes with the law but have since taken up driver reeducation courses can also update their insurance policies and demand for better premiums based on their improvements. Without proper defensive driving programs, policyholders with poor driving records had to wait for several years before being eligible for rate cuts and special insurance premiums.