The New Year marks a great time to double-check you have the right motor insurance. As your life changes, your insurance coverage should as well, but checking your policy is often the last thing on your mind during a life-changing event. The wrong coverage could leave you paying more than necessary for coverage and still be left with out-of-pocket expenses in the event of an accident.
Purchasing a New Car
Check your coverage whenever you buy a new car. Collision and comprehensive coverage should cover the complete value of the new car, not the lesser value of the old one. Also, make sure you have adequate rental car coverage to pay for a comparable replacement vehicle if your car ever has to go into the shop.
Purchasing a New House
A new house doesn’t seem like the time to check your auto insurance, but it may help you save money. First-time homebuyers should look for the company offering the best homeowner’s discount. People who’ve owned a home before should check whether rates in their new neighborhood are cheaper if they leave their current insurance company.
Marriage
If you’ve got married, shop insurance companies for the best discount on insurance. Discounts for married couples are priced differently, so shop around. You may get a discount for staying with you or your spouse’s old companies, so shop there first.
Birth
A new baby means you need a change in your motor insurance coverage. Verify you have enough medical coverage to cover your new addition. Additionally, some insurance companies give you a discount for a new baby, as babies are signs of increased responsibility and maturity. All companies price these things differently, so shop around.
Divorce or Widowing
A divorce or death is always tough, but it’s definitely time to make sure you’re not overpaying for auto insurance. Make sure the coverage levels reflect those likely to be in the vehicle and you remove any cars you no longer own. The company with the best rates for married couples may not have the best rates now you’re single, so look away from your current insurance provider.
Retirement
If you’ve retired in the last year and you haven’t checked your auto insurance policy, you’re probably paying too much. You can drastically lower your weekly and yearly mileage because you’re no longer commuting, and you may also be missing out on additional benefits for seniors. As always, comparison shop different companies to make sure you’re getting the best discount.
Any of these life-changing events should mean you’re shopping for new insurance, but even if you haven’t, it’s still time to check you’re not overpaying. Periodic pricing changes from the insurance companies and gradual life changes may mean you can get a better deal by looking outside your current insurance company. Why not make a New Year’s resolution to spend less? Shop around for new insurance coverage today.
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