Adjusting Your Auto Insurance Policy

Adjusting Your Auto Insurance Policy

An auto insurance policy is not a static line of coverage. Oh sure, it can be, but it really shouldn’t be. After

all your life changes, as do the medical and liability expenses that can accompany an accident.

This means that you must make an effort at least annually to make adjustments to your auto insurance

policy in order to ensure that it is as effective and accurate as you need it to be.

Annual Auto Insurance Adjustments to Consider

Adjust your average annual miles driven: Your insurer needs to know about how many miles

you drive per year in order to assess what kind of risk you pose to them. Every year, make sure

you report any major changes to them.

Take advantage of applicable discounts: You can get discounts when you add anti-theft

devices to your car, such as alarms and steering wheel locking devices. In addition, some apps—

like the State Farm iPhone app, Steer Clear—offer drivers discounts when they are downloaded

and utilized. And don’t forget the discounts you get for taking defensive driving classes. Every

year before you renew, consider which of these discounts you might now qualify for.

Add uninsured motorist coverage: If you don’t already have uninsured or underinsured

motorist coverage, then you need to consider adding it to your policy. Without it, you could be

stuck with some major bills after an accident with an uninsured or underinsured motorist.

Adjust your limits: Your limits might be fine for your risk exposure this year, but next year the

rising cost of medical care and changes in your driving habits could mean that you need to

increase your limits to help reduce your exposure. In addition, cars and other personal property

are only getting more expensive. Just another reason keeping a tight rein on your limits is so

important.

Change your deductibles: As the years go by, your ability to support your current deductible

may change. In lean years, you might have fewer savings to commit to a deductible, and as you

pay off debt you might find you have more disposable income to put toward that responsibility.

Keeping your deductible at an accurate level for your budget will help to control your risk

exposure and your premium.

The next time your auto insurance policy is getting ready to renew, remember these points and update

your policy so that it works with your current life—not the one you had when you originally took out the

policy.