Whether your auto insurance policy renews every six months or annually, there are a few steps you should take to ensure the proper maintenance of a policy as well as to maximize your savings.
Upon renewal, it is always a great idea to revise your coverage to make sure that it remains sufficient and properly provides you with the protection you need. Homeowners should consider high limits of liability coverage in order to protect their home equity in case of lawsuit. Having a minimum amount of coverage can leave you vulnerable to liens on your property. Sometimes raising your liability protection to $100,000 will not make too much of an impact on your rates.
Since insurance companies use many factors to determine premiums, you should revise some of those factors and make sure to update them if they have changed. For instance, if you’ve become married, or if your commute from home to work or school has changed, inform your carrier to take advantage of marital status or low mileage discounts.
Upon policy renewals, your premiums may drop if you have not had any violations or accidents during the term. If you did, however, your rates may increase and you may have to take some actions to help reduce your premium. Some carriers penalize violations drastically but others don’t. If your premiums increased for any reason, you may want to shop around to compare the rates of other insurers.
An important step to take is to compare your renewal rates with at least four other carriers’ rates to make sure that the premiums you pay are still competitive. Remember that most insurance companies provide discounts for those with current coverage. A fast and easy way is to complete an online car insurance comparison from websites like OnlineAutoInsurance.com where one can complete a single form and instantly compare the rates of leading companies. Comparing quotes is free and there are no obligations to buy.
Courtesy of OnlineAutoInsurance.com
