Your car insurance policy is an important contract that provides coverage and financial protection in the event of an accident or other insured incident. However, your needs and situation constantly evolve, so it’s essential to re-evaluate your policy to ensure it still meets your requirements. As a general rule of thumb, you should re-evaluate your auto insurance policy at least once yearly.
There are a few key life changes that warrant taking a closer look at your coverage:
Moving
If you relocate to a new home in a different city or area, your risk profile and insurance rates could change significantly based on your new location. Driving habits and accident rates vary depending on where you live and drive most. Make sure to inform your insurer about any address updates promptly. Please do so to avoid issues with filing claims down the road.
Changes in Driving Habits
Major shifts like getting married, having children, working from home part-time, or retiring can all impact how frequently and far you drive now. Lower annual mileage lowers your risk to insurers, qualifying you for reduced premiums. Other changes, like rarely driving late at night, may also affect the rates.
Adding/Removing Vehicles
Purchasing a new car or selling your current one means adjusting the vehicles covered on your policy. Promptly notify your insurance company about vehicle changes so your policy accurately reflects your needs. You must do so to have coverage if you have an at-fault accident in a non-listed vehicle.
Changes in Marital/Relationship Status
Life milestones like marriage, divorce, and entering a domestic partnership change your insurance status and discount eligibility. It’s essential to inform your insurer about any changes so you get rated accurately based on your current situation.
Getting Traffic Violations or At-Fault Accidents
Any new infractions or claims on your driving record will negatively impact your rates going forward if not addressed with your insurer. Take time to understand how these incidents raise your premiums long-term. You can negotiate discounts by completing a defensive driving course, for instance.
In addition to these major life events, you should also evaluate your policy annually because insurance costs tend to rise gradually over time due to inflation and other factors. Reviewing your rates annually allows you to shop for better quotes from competing insurers to save money.
You’ll also want to examine your coverage limits and deductible amounts to ensure they align with your needs and financial situation. For example, you can lower your liability coverage of bodily injury or property damage if your assets have decreased. Similarly, raising a collision or comprehensive deductible is an easy way to save on premiums if you can afford the higher out-of-pocket responsibility.
Taking a few minutes to reassess your auto insurance once a year is a smart way to maintain excellent protection at an affordable cost. Pay attention to this important task – your savings and security may depend on finding the right coverage for your current lifestyle.
Contact an Insurance Broker Today
If you are looking for an insurance broker to re-evaluate your car insurance policy, isure is the place to be! Their insurance brokers in Ontario can help you save premiums by comparing car insurance rates.
