Among tasks that many people dislike is renewing a car insurance policy or looking for new one. That’s the reason why people hurry through the process and they want to finish it as soon as possible. We should know that making small mistakes is easy, but there could be huge implications later. We should slow down and review all details. We need to take time, so we can ask the insurance broker proper questions. As an example, we need to know the type of coverage and the actual amount that we should purchase. The information that we find could prompts to switch to an alternative car insurer.
- Review our coverages: Some coverages are mandatory, but others are not. They are different in each state and country, so we need to review local laws, As an example, the state may require us to have uniderinsured/uninsured motorist, 3rd party liability, accident benefits coverages; while other coverages can be considered as optional. Optional coverages may cost more than they are worth, so we should drop them to lower our car insurance rates. We may consider removing comprehensive and collision coverages if we have them. In general, the combined annual insurance costs should be less than ten percent of our car’s values.
- Review our car: Before renewing our policy, we should review our car and consider whether we drive a risky vehicle. This is a factor that insurer consider when they calculate the rates of policyholders. There’s nothing we can do to change the make, model and year of car; but we can make our car more secure and safer. We could add devices that make it harder for thieves from stealing our car. Based on historical data, even a simple security device, like a steering wheel lock; could deter car thieves. They will likely to choose more vulnerable cars, because they want to cut the time needed to steal the car.
- Check whether we are qualified for discounts and deals: we could qualify for discounts, if we have become good car drivers. Unfortunately, many policyholders don’t find out whether they are actually eligible for discounts. We may also get discounts, if consolidate property and car insurance lines with the same company or we install an immobilizer in our car. We shouldn’t assume that “good driver” discount is added automatically to our policy. The insurer has the information to make this kind of decision, but the discount could remain unclaimed until we investigate.
- Check our car parts: Eventually, we will need to replace car parts, during maintenance or after an accident. Many car components are not designed to last forever due to wear and tear. Some car insurers will pay only for OEM parts, while others will cover the rebuild costs. However, we should know that car insurance will provide us with good car parts, because a poorly-manufactured alternator could leave us stranded in the future. We should keep in mind that OEM parts usually offer better quality, but they are more expensive. This should be reflected in our premiums.
