For anyone with auto coverage, it is a good idea to annually review the vehicle coverage policy for all vehicles. The policy should be reviewed annually to ensure that all aspects of coverage are correct. You can save money by streamlining your policy or you might qualify for discounts. Consider the circumstances surrounding the purchase of your first auto insurance policy. Did you do thorough research on the company, and compare it with other providers that offer similar coverage options? Was the initial quote acceptable because there was a rush to get the vehicle on the road? These questions are crucial because it is possible that there was an overpayment for some options. A vehicle policy evaluation and any other insurance policies tied to it with the same company such as homeowner’s and life insurance, is an opportunity to potentially save money.
All vehicle owners need to be familiar with the state laws regarding mandatory liability coverage. The vehicle owner who fails to comply with the law can face a variety of penalties. They could lose their driver’s licence until they show proof of insurance payment. The vehicle could also be impounded. There might even be fines in some states. Every state has its own laws and each vehicle owner must follow them.
You should also consider that your vehicle/vehicles may have changed since the initial policy was written. They may not need the same level of coverage as you used to, like collision coverage which often has a highdeductible. If the vehicle is damaged or has some dents, it might be worth spending $1,000 to have it repaired. This amount would need to be paid upfront before insurance starts paying for repairs. In this situation, the deductible can be decreased or dropped entirely. This could save a lot on premiums in the next year.
Also, make sure the vehicles have modern safety equipment. This is not only for the safety and comfort of the insured’s passengers and their families, but it can also mean that the vehicle may be eligible to receive discounts in this area. This is a way to save some money that may not have been mentioned when the policy was initially signed. Ask your agent or representative about any discounts that may be available when you re-up the policy for the following year. This list is required by law to be provided to insurance companies so they can inform vehicle owners about the various discounts available. This long list may surprise some insureds. If eligible, these discounts may further reduce the premium for vehicle coverage.
