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:

  • auto insurance comparisonYou 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 Рcall them Рmake the first step Рbecome 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.