Why You Need to Reevaluate Your Car Insurance Expense

By September 28, 2017AUTO INSURANCE
reevaluate your car insurance

Apart from being an obligatory legality, car insurance is an essential part of the motoring experience. Terms and conditions change often and more importantly, you may be paying too much for the coverage you have in place. This is why it is important to reevaluate your car insurance policy on a regular basis – at least once a year is recommended on your policy anniversary date.

Keep in mind that insurance companies are in business to make a profit. and they feel nothing if you are paying “over the top” for your coverage. Moreover, they will hardly approach you and tell you that you paying too much, which makes it so important to reevaluate car insurance expense at least once a year.

Time to Reflect

When you reevaluate your car insurance, step one should be to review your driving habits. If you have been involved in any accidents in the last year or you have received citations, these could alter your car insurance rate. Claims – especially multiple – on your policy can skyrocket your premium.

‘Hands up’ those among us that insist and adhere to safe driving standards at all time, with no incidents to influence their risk profile. Perhaps you are driving less and covering fewer miles, preferring public transportation or even taxis. If so, either situation affects your premium rating and can result in reduced car insurance costs.

Influential Levers to Use When Cost Comparing

Assuming you have a clean driving record over the last couple of years, you should use this to your advantage.  Less time in the auto and fewer miles should convert to premium discount when your policy comes up for renewal. Your insurer wants to keep your business, but they are alert to stiff competition in the market.

Drilling Down

Understanding insurance matters are essential when searching for correct and affordable coverage to suit your needs. Finding appropriate coverage is no easy task, and seeking advice from a reputable broker makes good sense. They can provide guidance on the following considerations:

Deductibles and Premiums – High deductibles mean a lower monthly payment, but it can also equate to you paying more out of your pocket when claiming. When considering auto insurance, you should choose one with the highest deductible, but one that you can afford. This results in lower premiums, but keep in mind that you will have to fork out more when it comes to making a claim.

Risk – If you reside in, or travel to areas where your car is more likely to suffer damage, big city environments, for example, you will need proper coverage to manage the risk of damage to your auto. While in the big city, street parking may be your only option but it does come with higher risk of hit-and-run occurrences.

Liability Insurance – Each state has its own liability insurance requirements, so it is likely that you will need more than the minimum in order to protect yourself financially. Having more than the required amount helps minimize the risk of litigation, and asset seizures in the event of an incident, resulting in a claim. As rule of thumb, calculating how much you need is as simple as ensuring your liability coverage is more than the dollar amount of your liquid assets. This should safeguard your interests in the event of a claim.

There you have it, and hopefully, good advice when it is time to reevaluate car insurance expense! Shop around starting online right here.


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