Things to Consider When Reviewing Your Auto Insurance Policy

Posted in: Personal Insurance

When it comes to your auto insurance, ensuring that you’re both adequately protected and not overpaying is crucial. This guide will help you optimize your auto insurance to get the best value for your money.

Annual Policy Review

Each year when your auto insurance policy is up for renewal, take this opportunity to review it thoroughly. This ensures that you maintain the right level of coverage at the most reasonable cost.

Ensuring Adequate Protection

  1. Uninsured Motorist Coverage:
    • Many insurance policies fall short when it comes to providing sufficient coverage for uninsured motorists.
    • Aim for a minimum of $250,000 per person/$500,000 per occurrence for bodily injury coverage.
  2. Umbrella or Excess Liability Coverage:
    • These policies offer added protection beyond your standard auto insurance.
    • They are essential if your accident expenses surpass your policy limits.
  3. Full Glass Replacement:
    • Check if your policy covers full glass replacement, particularly for your windshield or windows when damage occurs for reasons other than accidents.
  4. Gap Coverage:
    • If you’re financing a car, gap insurance is crucial.
    • It covers the difference between what you owe on the car and its market value if it’s totaled.

Money-Saving Strategies

  1. Raise Your Deductible:
    • If you have a well-funded emergency fund, consider raising your deductible.
    • Higher deductibles typically mean lower monthly, quarterly, or yearly premiums, but make sure you can comfortably cover the deductible in case of an accident.
  2. Update Vehicle Use:
    • Notify your insurer if you’ve altered how you use your car, such as reducing your commute or carpooling.
    • You may qualify for discounts, especially if a student on your policy is more than 100 miles away from home without a car.
  3. Multi-Policy Discounts:
    • Explore combining your home and auto insurance policies with the same provider to unlock savings.
  4. Zip Code-Based Rates:
    • Check if your insurer offers lower rates based on your zip code, rather than just city or county.
  5. Better Rating Plan:
    • If you have an impeccable driving record and claims history, inquire about rating plans that offer better premiums.
  6. Good Student Discounts:
    • Make sure your policy includes good student discounts for eligible family members.
  7. Consider Dropping Collision Coverage:
    • When your car’s value drops to $3,000 or less, it may be cost-effective to drop collision coverage.
  8. Remove Surcharges:
    • Investigate whether you can eliminate surcharge points resulting from past tickets or accidents after a defined period.

Additional Policy Tips

  1. Rental and Towing Reimbursement:
    • Check if your policy includes rental and towing reimbursement.
    • If not, consider adding these features for added convenience during repairs.
  2. Clear Bank’s Name:
    • Ensure that your policy no longer lists the bank’s name if you’ve paid off your car.

Securing Your Coverage

By carefully reviewing your auto insurance policy and asking the right questions, you can avoid the pitfalls of inadequate coverage and overspending. If you have any questions about your policy or would like a free review, don’t hesitate to contact me at I’m here to assist you with your personal risk management needs.