What to Discuss in Your Annual Car Insurance Review

A woman standing by a car.When was the last time you contacted your insurance company? Annual reviews aren’t just for jobs and doctor appointments. Drivers should also schedule a conversation to review their auto insurance policy once a year – or more to get the policy that reflects their changing circumstances.

For starters, be sure you understand the basic components of an auto insurance policy and why you might need them. The five basic types of coverage to review include:

  1. Comprehensive coverage
  2. Collision coverage
  3. Liability insurance
  4. Personal injury coverage
  5. Uninsured and underinsured motorist protection

Why Review Your Car Insurance Each Year?

Insurance is intended as a protection that can cover expenses in case of an accident or other event. To be as protected as possible, you want your policy to match your circumstances as closely as possible. A review is also an opportunity to ask questions about your policy and make sure you’re getting the best rates possible. Talking to an agent will remind you of things that may have changed in the last year that warrant an adjustment. You might even end up saving a few dollars.

Common Issues Can Alter Your Policy

One reason it’s important to check in with your insurer is that several different factors that people commonly experience can alter their policy – whether they are fulfilling the requirements, as well as the rates they might be paying.

Address Change

One of the most common reasons to review your policy if you are anticipating a significant move. Premiums are often affected by a person’s address. They can fluctuate based on whether you live in a crowded city or a suburb. Let your agent know where you will be parking your car after you relocate.

Children

If one of your children is approaching driving age, speak with your agent to make sure your family has the proper coverage by the time they’re behind the wheel. There’s more than one option for insuring a young driver. Your choice may depend on whether your teen plans to drive out of state, on the amount of driving, and your state’s insurance requirements. Weighing the cost and benefits of each option will help you make the right decision.

Work

Are you switching to a new position that impacts your commute? Find out if details such as hours on the road or where you park could lower your premiums. On the other hand, a job that requires long distance trips may also require new insurance to cover any added risks.

Your Age

Even certain birthdays can change your premium cost.

Contact Auto Insurer or AZ Auto with Insurance-Related Questions

As long as they haven’t been in an accident, many folks will put off indefinitely a call to their auto insurance provider or forget to do so entirely. Just as you would with your annual appointment with the doctor or dentist, put it on your calendar each year before it is set to renew. Give yourself a few weeks of padding before the renewal date so you can do a little research on what your options are beforehand and to consult with your family before making any changes.

Finally, ask if there is anything you might have missed that can impact how much you pay. Information is power, as they say. Insurance is a significant expense, and people deserve to know what they’re paying for and how to get the most out of their policy. You might even discover you want to switch to a provider that better matches your needs.

Looking for new or less costly insurance? Call AZ Auto for a FREE insurance quote today, and to get all of your auto insurance questions answered.