Car insurance isn’t limited to simply purchasing a policy or making a claim when need be. To truly benefit from your policy and ensure that you have the best protection for your money, you need to manage your policy and keep it updated to respond to your needs and to any significant life changes you may experience.
From updating contact details to changing payment details, managing your insurance coverage is necessary and beneficial so that you have the coverage you are paying for the entire length of your policy. Failure to communicate changes can challenge the validity of your coverage.
Whether you communicate with your insurance provider on the telephone or by setting up an online account, changes will affect your policy’s efficacy, and quite possibly, the cost.
Life Changes that Impact Insurance Policies
Managing your auto insurance policy first and foremost implies communicating to your insurance provider any change in your life that will impact your car insurance policy. These might include:
Adding New Drivers
If a family member will be using your vehicle for a significant amount of time, he or she should be added to your policy.
Changing Your Address
If you change neighborhoods, your new zip code may imply more or less risk for you so your premium may be more expensive or perhaps cost less. Whenever you move, you must update your policy.
This is critical if you are moving to another state as individual states have varying auto insurance requirements. When you enter a new state, you must comply with the new state’s laws.
Even if your actual insurance provider sells policies in your new state, you will need to purchase a new policy. If your insurer does not insure in your new state, you will need to switch your provider.
You will also need to switch your car insurance before you can change your vehicle registration or driver’s license as most states will require proof of insurance to effect these changes.
Also, if you move to a new state the types of car insurance that are mandatory may change. In a no-fault state, you may be required to buy PIP-Personal Injury protection or MedPay in the event of an accident. States will determine what coverage is mandatory within their borders and their minimum insurance requirements.
Changing Your Employment or Profession
Some professions are considered to be riskier than others by insurance providers.
Changing Your Use of the Vehicle
If you begin to use your car for business or professional purposes, you must inform your provider to ensure coverage.
Changing Where You Park Your Car
If you acquire a garage or a parking space in a garage, this is considered to be less risky than parking on the street and might lower your premium. The opposite is just as important should you need to park your car on the street.
Driving Record Changes
If you receive a traffic violation, you may receive points on your driver’s license, so you need to notify your insurance company. Any kind of conviction for speeding or otherwise needs to be reported.
Getting Married or Divorced
The addition or removal of a life partner will affect premiums. If you get married and share a policy with your partner, you may be eligible for a discount!
Modifications to Your Vehicle or Changing Your Automobile
An increase in horsepower translates into more risk for insurance companies while the installation of safety devices may get you a discount. Changing your vehicle also must be communicated for coverage to be valid. A newer vehicle will probably cost more to insure but may entitle you to discounts due to newer safety features.
Less Mileage
You should also inform your provider if you no longer need to drive your vehicle or will drive less due to retirement or health issues. You may be eligible for a refund.
If you do not communicate these changes or similar changes, your policy may be invalid in the event of an accident or incident. This means your provider will not pay any claims you file.
Getting Your Money’s Worth – Don’t Opt for Auto-Renewal
Never opt for auto-renewal if you pay with a credit card. With automatic renewals, policies are rolled over with the insurance provider specifying the cost. These prices may be less competitive than what other providers can offer, and renewals usually bring an increase in premiums.
Renegotiating long-standing policies is another option for getting the best prices. But before doing so, shop around to get other quotes for the same coverage. If you find cheaper coverage, call your insurance provider with the news, and get the negotiations started.
If you do arrange a new policy with a new insurance provider, make sure it begins before you cancel your current policy or stipulate the new policy before your actual coverage runs out to avoid charges for gaps in insurance coverage.
Filing a Claim
In the event of an accident or damage to your vehicle, contact your insurance provider as soon as you are able. Most insurance companies allow claims to be filed by telephone or online.
Present your provider with detailed information and any documentation you were able to collect at the scene. Be aware of your deductible which is the amount you will need to pay out of pocket for damages.
For accidents, providers will attempt to determine who is at fault. Depending on if the fault is yours or not, liability or collision coverage will cover vehicle damage. For medical costs, MedPay, or PIP will cover expenses up to your policy limit if you are at fault or in a no-fault state.
For theft, vandalism, natural disasters, or single-vehicle problems, you will need comprehensive coverage or collision coverage in the case of a single auto accident. For car theft or property theft, check with your agent to see if these losses are covered by your policy.
Stay in constant contact with your insurance company when filing a claim. If you’re planning to switch car insurance companies while dealing with an open claim, let your new insurance company know.
The Essentials of Managing Car Insurance
Keep your insurance provider updated as to any significant life changes that may affect your policy. When involved in an accident or if you have suffered damage contact your agent as soon as possible. Review your car insurance policy periodically so you remember what is covered and can re-evaluate if the policy continues to meet your needs.
Begin shopping around approximately a month before your current auto insurance expires to verify if your current policy still is the best choice for your insurance needs and your wallet.
