Some people buy auto insurance plans and never update or change them for years. Is this how you should handle it, or should you update your plan more often? Here are some recommendations to help you know how often you should update your auto insurance policy.
Each Time You Switch Vehicles
One of the most common reasons people update their insurance policies is when they have vehicle changes. For example, if you sold one of your vehicles, you might want to drop the insurance coverage for that car, as you would no longer need insurance on it. If you trade in one car for another, you will need to switch your insurance coverage from the old car to the new one. If you buy another vehicle, you will have to add coverage for that new one. Therefore, any time you switch vehicles in any way, you will need to contact your insurance company. You should try to call as soon as you buy, sell, or trade a car in to acquire coverage right away.
Any Time You Have Major Life Changes
It is also wise to update your auto insurance plan when you experience major life changes. For example, if you get married, you can combine your auto insurance coverage with your spouse, and you should. Combining plans can lead to a bundling discount. If you move to a new house, it is also a good idea to update your insurance coverage. You might want to make a habit of contacting your agent any time something big changes in your life, including if you change jobs or pay off your vehicle.
Once a Year If Nothing Else Changes
If you experience no changes in your life or with your vehicles for an entire year, you might want to contact your agent at that point. Updating a policy once a year is always a smart move, as you might qualify for new discounts on your plan. When you call once a year, you can discuss your risks, needs, and desires. The agent can tell you about options you might be interested in, and you can update your plan to meet your needs.
Updating your policy once a year is recommended as a minimum. If you have not updated your auto plan for a while, now might be the right time. To learn more about auto insurance options and quotes, call a local agent today.
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