States compel you to have car insurance if you are going to own and drive a car. Proof of insurance coverage is a requirement to license a vehicle for street use. The government has certain set liability minimums that you have to meet.
It is up to you to decide who insures your car.
You get to pick how much coverage you want and the type of insurance you need to protect your assets. Reviewing your car insurance from time to time helps make sure that you have enough insurance. You can assure that you are paying a reasonable price, and that you have the type of insurance that will cover your needs. Here are five great opportunities to review your car insurance in a way that will help you remember to do it and prompt you to do it now.
Review your car insurance when you change or add vehicles.
All insurance companies require you to advise them when you need to add, remove, or change the vehicles being covered. Since you have to be in contact with your agent or company, this is a great time to browse the small print. You may or may not want your new car to have the same coverage as your previous one.
Check your policies when you change or add drivers.
When there are changes in the people driving the vehicles, drastic adjustments may be needed to your car insurance. Especially when adding or removing young drivers, pay close attention to make sure that you are structuring your insurance to reflect the changes that will affect your premiums.
This is a good time to ask lots of questions regarding the options that your insurance company may offer regarding the changes. Anytime that you are reviewing your policy is a good time to shop around to make sure that you have the best option and price mix for you.
Paying off a car is a good time for an insurance check up.
Many people choose to drop their collision insurance and keep only the liability when their car is loan free. Take time to investigate whether this may be an option that you may want to consider. Pay special attention to how much this will drop your insurance cost. Since the liability side is often the more expensive, not everyone finds the savings to be enough to offset the extra financial risk.
Review policies annually.
Pick a time like your birthday to review car insurance each year. Insurance rates go up and down from company to company. Checking products and pricing once a year is just good business.
Look over your car insurance options when policies are about to renew.
Car insurance is written for one or more year terms. A three year term is somewhat common. While you can drop a policy whenever you choose, insurance companies check to see if they want to keep you as a customer at the end of a policy term. This makes it a good time to decide if you want to keep them or change your coverage in some way.