How Often Should I Change Auto Insurance?

Motorists should consider the changes in their lives and review their car insurance at least once a year to ensure their policy still meets their needs. They should start with getting out their policy documents and have a good look at the declaration page to see if they need to update anything there. This page contains all the relevant details like the address, vehicle details, listed drivers, coverage, premium and endorsements.

Many insurance-qualifying events happen more often than policyholders realize. People buy new automobiles, change addresses, jobs and even partners and children grow. All these details can quickly get buried and become the new normal. That is way, motorists must make a habit of looking at their current position, evaluate the things that happened in the last year, consider implications and determine if they should change their car insurance coverage accordingly.

Policyholders may not need to change their car insurance every year but they should make a habit of reviewing it annually.

A vehicle insurance review is not complete without checking if you are still paying a fair premium or you can lower it this time around. It may be that your renewal quote came a bit higher for no obvious reason and this is a chance to see if you can improve on it by getting a few quotes.

Checking your policy and shopping around at least once a year is extra important to make sure motorists don’t get into an automatic renewal routine that will carry on until something breaks. Unfortunately, you cannot have this attitude with auto insurance because you need to make sure you will have the coverage when you have a claim. It would be too late when you have a claim to realize your policy became insufficient and out of date years ago.

Insurance isn’t like most things you can buy when you need it. It is a unique forward-looking arrangement requiring anticipation, preparation and purchase to cover possible risks, which may never materialize. These risks have the potential of causing considerable hardship and stress and policyholders can only have a peace of mind when they are comfortable with the policy they arranged.

Actually, policyholders don’t need to wait for the next renewal when they have a material event in their lives like moving to a new home, buying a new car, retiring, getting married, their children coming to driving age, divorcing, listed drivers moving out or new drivers moving in.

Also, things like moving to a new state may force people to buy a new car insurance policy because they now need to follow different state rules. Also, things like moving to a metro area or buying a flashy automobile can impact your rates so much that it may be necessary to look at alternative providers.

Surveys suggest that motorists feel they need to look for an alternative auto insurer when the renewal premium comes far too high, they aren’t happy with a recent customer service experience or they suddenly feel the squeeze and like to save money.

However, nothing needs to go wrong for motorists to start looking for new auto insurance. Shopping around once a year is like an auditing process. You apply yourself to the job in hand and try to find better coverage, cheaper price and more convincing insurer. This is the only way it can be looked at.

If you start with a thinking that you have pretty good coverage and a great automobile insurer, you cannot apply yourself properly to the job of verifying that it really is the case. Besides, there is no way of knowing that a premium is fair until you get a few quotes and compare prices. In the same way, you can only say one company is good in comparison to the other.

There are some motorists who are with the same company for years out of inertia and there are the ones most likely to find better coverage, more suitable provider and much cheaper premium. And some motorists switch auto insurance every year because they don’t believe loyalty does them any good and they switch if they can find something better.