How often should I review and update my car insurance coverage?

Reviewing and updating your car insurance coverage regularly can help you save money and ensure you have the necessary insurance.

Car insurance prices often fluctuate over time. Even if you compare car insurance quotes carefully when you choose an insurer, the company with the best price for you may differ in six months or a year.

How often should you review and update your car insurance coverage? Here’s some additional information about when you should review and update your car insurance and the factors you should consider.

How often should I review and update my car insurance coverage?

Reviewing your car insurance coverage with your agent at least once per year is a good idea. That way, you can get the best price and the coverage you need. Here are some situations when reviewing your insurance is a good idea:

Updating Your Insurance on Your Birthday

Reviewing your insurance on your birthday works as a great reminder to help you make sure you take a look every year. Car insurance companies also consider your age. As you become older, the provider with the best price could change.

Updating Your Insurance After Moving

The state and city where you live can impact your car insurance requirements and rates. Some states require more liability insurance than others. This type of car insurance pays for the repairs and medical expenses that other people need if they become involved in an accident you have caused.

It also helps you avoid lawsuits over traffic accidents. In no-fault states, personal injury protection (PIP) coverage pays medical bills for you and your passengers, even if another driver caused the crash. Liability insurance still pays for repairs.

Many insurance companies consider the neighborhood where you live along with the state. People who live in urban areas with more traffic and higher crime rates pay more than residents of suburbs or rural areas.

Updating Your Insurance After Retiring or Changing Jobs

Insurance companies often adjust rates based on your daily commute and route. People who work from home, are retired, or live close to work can expect to pay less than those with a long commute. Insurance companies understand that people who spend less time on the road have lower accident risks.

Keeping the mileage on a vehicle low can also help it stay in good condition, preventing accidents caused by mechanical failures. A short commute can also make mechanical breakdown insurance for your vehicle less costly.

Updating Your Insurance After Modifying Your Car

Most car insurance covers the replacement cost of your vehicle without any additions or modifications. If you add a new paint job, rims, hubcaps, raised suspension, or any other parts, you won’t get that money back if your vehicle is considered a total loss after an accident.

To get the current value of your vehicle, consider customized parts and equipment coverage. An appraiser will usually assess the value of your car before providing an insurance quote. Whenever you make new modifications, getting a new appraisal is a good idea to ensure you have the coverage you need.

Updating Your Insurance After a Ticket or Accident

Even a minor infraction could increase your insurance rates. Accidents that weren’t your fault can raise your rates as well. Some of the best car insurance companies for drivers with a bad driving record are Progressive and GEICO.

Things to Remember About Reviewing and Updating Car Insurance Coverage

Reviewing and updating your car insurance regularly helps ensure you’ll have the coverage you need to pay for losses after an accident. It can also help you save money and keep your rates low while complying with local laws about insurance.

The average cost of car insurance is $147 per month for people in the United States. If your car insurance rates are higher than average, you should pursue quotes from other companies.