Changes that occur in your life or with your primary vehicle warrant a new look at your auto insurance coverage to make sure you have the most up-to-date coverage working for you and all of the drivers in your family. You need to be proactive in letting your insurance agent know when certain life changes occur to make sure that the car insurance you have been paying for not only meets your needs but will pay claims in the event you experience a loss.
You have at least 5 reasons to consider for keeping your auto insurance updated:
- You recently changed addresses or moved locations.
- You added an additional driver.
- You started a home-based business involving your personal auto.
- You purchased a secondary vehicle.
- You reduced the number of miles on your primary auto.
These reasons could have the effect of either raising or lowering your current car insurance premiums. Failure to properly notify your auto insurance provider could leave you without the protection you have been paying for.
Changing Your Address
Auto insurance companies use location, such as your zip code, to determine the rate you pay. If you were to move to a zip code with a higher loss ratio than the one you have associated with your present car insurance coverage, you may find yourself without coverage if an accident were to occur.
An additional household driver, especially one who has not acquired the same driving skills as you due to their inexperience, could cause your rates to increase. It makes sense to review your car insurance and determine what additional coverage is needed to provide for any new drivers you may have in the household.
Operating a home-based business that relies on the use of your personal auto may provide additional income but could impact your auto insurance. Many car insurance policies include exclusions for activities related to the business use of your auto. If you have one of these exclusions and are involved in an accident, you may find yourself paying the cost of the loss out of your own pocket.
Purchasing a Second Vehicle
Buy an additional car, change your car insurance. Any additional car you own (or lease) in your home will require protection against loss. Multi-vehicle and bundled savings may be available to you depending on the options your car insurance company provides.
You reduce the wear and tear of your vehicle when you drive less. Moving toward alternative modes of transportation such as biking, walking, public transportation, carpooling, etc. are not only good environmentally but could benefit you financially in terms of your auto insurance. A check with your insurance agent can help you see if there are savings you can achieve from driving less.