Hate paying your auto insurance premiums? Big surprise: you’re not alone. Every year you dole out thousands of dollars for coverage you never use. Do you really need as much coverage as you have? Can you get a way with less? The National Association of Insurance Commissioners (NAIC), “recommends that consumers review car insurance policies every year.” Yet only 20 percent to 35 percent of people actually do so.
Insurance Review. Wow, What Fun
Yes, another task you’re not looking forward on par with visiting your dentist, but unlike your annual teeth cleaning, reviewing your insurance can save you money which you can use for more fun pursuits. By reviewing your auto insurance, you’ll learn whether you’ve got the right coverage for your current situation or whether you can make some changes and possibly save some cash. The good news is that the auto insurance business is very competitive; after all, everybody with a car has got to have at least some. So you’ll be able to find competitive coverage as well as competitive rates online from the comfort of your home or office.
Anything New at Your House?
New drivers? New cars? Fewer drivers? Perhaps your car has reached the age when it’s time to pull collision coverage because it would cost more to repair than the car is worth. Maybe you’re senior parent has turned in their keys. Perhaps your kids have their own cars now. All of these are valid reasons to review your coverage and consider a possible change.
Maybe You’re Underinsured
You know why you need insurance, liability, comprehensive and collision. You don’t want to spend your life paying a legal settlement for an accident that happened when you had too little insurance. That would really burn. When you consider that most cars cost between $25,000 and $35,000 these days, having only $15,000 collision doesn’t make sense. If you total someone else’s car, you’ll be making up the difference out of your paycheck which another reason why you should review your insurance and make sure you’ve got the right amount of the right coverage.
According to ConsumerFinanceReport.com, “Many people mistakenly interpret the term “comprehensive coverage” to mean that they are covered for any sort of damage to their cars. This is not true. Comprehensive coverage only pays the cost of damages that occur as a result of a non-collision incident. If you do not have collision coverage, you end up paying for the expenses incurred in an accident.”
Start With Your Existing Policy First
Since auto insurance can be so competitive, contact your current agent and ask them to help you review your policy. This is business. There’s nothing wrong with wanting to save some money and make sure you have the correct coverage. You’ll be surprised what your agent will come up with to keep you as a client but don’t forget to do some comparison shopping. Try using TraderQuotes to make sure you’re getting everything you can for a little as possible.
Karen Boyarsky is an avid blogger. You can follow her on Twitter @Boyarskykareni.