Once a year you should do a comprehensive auto insurance comparison of your own insurance policy.¬†¬†The purpose of this comparison is a policy review as well as an education for you about your auto policy and your coverages.¬† Your car insurance agent should handle this review for you at no charge.
Many insured‚Äôs don’t¬†know what their insurance coverages are;¬†at the time of a claim then, they don’t know what is covered and not covered.¬†¬†¬†An annual review is crucial¬†in helping you know what you have before you need to use it.¬† Let’s¬†look at¬†a quick way to review:
Policy¬†Coverages: these are stated in¬†the Declarations Page of your insurance policy.
- Liability –¬†this¬†coverage is required by law.¬†¬† In the event of a car accident where it is determined¬†to be your fault, the payments for bodily injury or property damage will be paid out of this coverage limit.¬†¬†¬†The¬†insurance company’s responsibility to defend or settle ends when the limit of the liability coverage stated on the declaration page has been exhausted.¬† In other words the limit of liability is the maximum limit the insurance company is responsible to pay for damages.
- Your Deductible – this is the amount of a claim that you are responsible for paying.
- Comprehensive coverage¬†– this coverage pays for your car if you hit a tree, crack a windshield or¬†have your car keyed.
- Collision coverage¬† – this coverage pays for¬†damages to the insured’s car regardless of fault.
- Uninsured Motorist coverage – this covers pays for the bodily injury and sometimes property damage of the insured’s if the other party in the accident has no insurance or¬†it is a hit and run accident.
The best time to learn about¬†the coverages in your auto insurance policy is before you have an accident, incident or claim, not at time of claim.¬†¬† You may think you have coverage until you file a claim, then your claim is denied for non-coverage.¬†¬†¬† If you know ahead of time, you can add the coverages to your policy.
Annual Review Tips:
- You should review your auto policy once a year with your insurance agent.
- Your agent wants you to have complete coverage for any loss that may occur.
- Your car insurance agent¬†should review your¬†car insurance policy coverages to make sure there are no gaps in coverage.
- You need to engage in the review process with your agent.
- Your agent cannot adjust your policy coverages without your approval.
- If your car is older, it may not need certain coverages.
- Maybe you can adjust your deductible; which may lower your premium some.
- Maybe you need to add more coverage, if you have added drivers in the household.
- Maybe you need to drop coverages, if you have dropped drivers.
- Check for discounts¬†which may apply but did not apply in the past.
- Maybe you now a driver in the household who can get a good student discount.
- Maybe you are retired and do not use the car for work anymore, so you can change the use of the car to pleasure; which may drop your premium a bit.
Yes, you are busy; yes you¬†many other more important things to do than meet with your insurance agent to review coverages.¬† So maybe your agent can review with you over the phone – call them – make the first step – become engaged in the process.
The next time you have a car insurance claim, you will be relieved that you have the coverages you expected; and won’t be shocked to learn about¬† certain coverages that you do not have.