Proper auto maintenance involves more than regular oil changes and replacing wear-and-tear parts, such as Trico wiper blades. Checking in on your insurance policy is another part of auto maintenance that often gets overlooked.
It’s important to review your insurance coverage on a regular basis. Ideally, whenever you take your vehicle in for maintenance, you should take a look at your insurance policy to make sure it’s up to date and aligns with your current needs.
Focus on coverages, limits, and deductibles when you look at the policy. If there’s a major change in your life—for example, you get married, or your child becomes old enough to drive—take a moment to consider whether your coverage is sufficient. Below are some tips to keep in mind when you’re assessing your policy.
1. Learn about the discounts.
Insurance agencies offer discounts for a number of different reasons. Often, these discounts are not advertised and you will need to ask for them. However, you could end up saving a lot of money through them. When you review your policy, think about any life changes that may affect your situation and qualify you for a new discount.
For example, if you are a student on the honor roll or dean’s list, you may be able to get a discount. Completing a defensive driving course can also help you qualify for a discount, as can installing an anti-theft device in your car. Affinity groups associated with your profession or your university can also get you a discount.
2. Do an annual rate check.
When you review your coverage, it can be helpful to do a rate check. If you have been with your insurer for a number of years and have not had any claims, you probably won’t find a better rate elsewhere. However, it still can be worthwhile to look. Various websites will let you compare premiums from multiple insurers. Typically, you won’t receive a quote immediately; it will be emailed to you after an agent reviews your details. You might also consider contacting an independent agent who can check premiums at several different carriers simultaneously on your behalf.
3. Choose insurers with high ratings.
When you think about the best policy, consider more than just the lowest premium. If an insurer offers you a better rate but has poor ratings, the savings may not be worthwhile. Some agencies will hassle repair shops to cut corners, charge you additional money for original parts, or frequently give low repair estimates. Some insurers may increase your premium after an accident, even when you are not at fault. Do some research about how happy policy holders are with the insurer. Often, it makes sense to pay a little more each year if you know you’ll have good support when an accident happens.
4. Understand the different types of insurance.
Shopping for car insurance can be stressful considering the large number of types available. The most basic is liability insurance, which is required by most states. This coverage pays for any damages or injuries you are personally responsible for after an incident. In no-fault states, you will need personal injury protection, which pays for your medical expenses regardless of who is at fault.
Collision insurance protects your vehicle from another car hitting you, or even things like a rogue shopping cart slamming into your car. If you want protection from weather-related damages, you will need comprehensive insurance. If you have a loan for your vehicle, you will likely be required to purchase comprehensive insurance to protect the investment.
Another type of coverage to consider is gap insurance. This product covers the difference between the value of the car and the payoff if it is called a total loss, so that you can pay any loan off in full.
5. Think hard about the best deductible.
Higher deductibles will reduce your premium, since you will need to pay more out of pocket in the event of a claim. Increasing your deductible from $200 to $500 can reduce you premium by up to 30 percent. Increasing the deductible up to $1,000 can decrease your premium by up to 40 percent. However, if you have a lot of claims, this deductible can become overwhelming.
Think about your driving record. If you typically only file a claim every few years, then it may make sense to have a higher deductible in exchange for a lower premium. Make sure you can actually afford the deductible in case anything happens unexpectedly.
6. Ensure your coverage is enough, but not too much.
States have minimums when it comes to liability coverage, but only purchasing the minimum coverage is not always the best move—you could end up owing a lot of money if a costly claim occurs. However, you may be able to decrease some of your other coverage. If you have good health coverage, for example, you may not need a lot of personal-injury protection.
At the same time, if your usual passengers are not well insured, it can make sense to go higher with this coverage, too. Additionally, if you have a second vehicle, you may not need rental reimbursement and if you have roadside assistance from another entity, you do not need it through your insurer.