Reexamining Your Auto Policy
Dos and Don’ts in Reexamining Your Auto Policy
Ready for 2015? We are, and want to ensure you’re saving money and understanding your auto insurance coverage. So here are a few ways you can do just that.
You probably haven’t even looked at your policy since last year. Here are some dos and don’ts.
- DO pick up your policy and read it, making notes of any questions, so you can ask your insurance agent later.
- DON’T head for the Internet. Only an agent who knows and understands your situation can give you the right answers.
- DO understand your coverage options: You may not have the necessary coverage or have too much. Many people think full coverage includes things like roadside assistance and rental car coverage, when, in fact, you may only have liability, comprehensive, and collision coverage. Ask about additional coverages.
- DO ask about discounts: What discounts do you have now? What else is available? People’s lives change: If you married and had a child, you may be eligible for a new family discount; or a good student discount, if you have a 3.0 GPA; or an average 3-7 percent affinity discount for belonging to or working for certain organizations or companies.
- DON’T rely on state minimums: They usually don’t provide sufficient coverage, given current vehicle and healthcare costs. Purchase as much liability coverage as you can afford; it doesn’t cost much to increase liability limits (often just a few cents for an additional $50,000 or more in coverage).
- DON’T pay for unnecessary coverage. If your older vehicle is only worth $1,000, carrying comprehensive and collision coverage with a $500 deductible isn’t economical. The insurer would only pay $500 after you paid the deductible. You could have banked your premiums and used it towards replacing the car.
- DO work with your agent to pinpoint your needs and come up with the appropriate auto policy for 2015.