Speaking with an agent or reviewing your policy only when you’re filing a claim is a big mistake. Failing to keep your policy up-to-date may mean you are paying more for auto insurance than needed, or don’t have enough coverage, which could leave you on the hook for repair or medical bills.
In general, it’s good to check in on your insurance coverage once a year, at minimum. But are there other times you should make a point to take a look?
Your Life Has Changed
There can be many changes in a person’s life over the course of a year that could significantly affect insurance premiums. Getting married, graduating from college or purchasing a house will all impact your coverage costs.
Even simple changes could have you qualify for a discount. For instance, if your teen driver is now carrying a B average in school or recently took a defensive driving course, your premiums could drop.
You’ve Never Read Your Renewal Declarations
It is in your favor to read your renewal declarations page, as you may find that your premium lowered or you may need to add coverage.
Verify that all drivers are listed on the policy and that any due discounts are applied. A job change, joining a carpool, or your car becoming a year older can even affect your premium. Read your renewal declaration and contact your agent for a coverage review.
Moving is one of the most significant life changes that can impact your coverage costs. Did you buy a house? You may be eligible for an insurance bundle discount. Simply moving to a different part of town could affect your premium as well.
Keep in mind that misleading your insurer about your address to save money on the premium could result in a canceled policy or even jail time as misrepresentation is a form of insurance fraud. Penalties vary from state to state but normally include harsh fines and possible jail time.
You Don’t Know Your Coverage Type
It’s not uncommon for people to not know what type of insurance they have, but it’s not a risk you should be willing to take. Many people don’t understand their coverage until they’re in front of an attorney and learn the consequences of their decisions. Roughly 20% of individuals who have car insurance purchase only the minimum liability coverage required by state law.
If you’re at fault in a serious car accident and only carrying the minimum liability coverage, all of your personal assets could be at risk. Your car insurance agent can educate you on the various types of coverage available and make sure you are fully protected.
About Thayer Innes and Freeman Bunting Insurance Agencies
At Thayer-Innes Insurance Agency and Freeman Bunting Insurance Agency, we strive to provide comprehensive insurance solutions to support Ann Arbor homeowners. Our homeowners’ policies can be tailored to meet your specific risk exposures and provides much more coverage than a traditional policy, giving you the peace of mind you deserve. For more information about our products, contact us today at (855) 395-6316.