Reasons To Update Your Auto Insurance Policy

Many people never make changes to their auto insurance policies. The downside to this is that your insurance needs might change. If you do not make changes to your policy, your plan will never change. If you are not sure when to make changes to your plan, here are some situations when you should consider updating your auto insurance policy.

You Switch Vehicles

The most common time people call their insurance companies is when they switch vehicles. If you trade-in your car for a newer one, you need to let your insurance company know. They will modify your plan to reflect this change, and your premiums might change. When you switch vehicles, you might also need to change your coverage types. Your insurance agent can help you know what changes you might want to make. The agent will ask some questions to assist you with these decisions.

You Pay Off a Car

You might also want to contact your insurance agent if you pay off one of your vehicles. When you have a loan on a car, your lender will require having specific coverage types. When you pay off the car, you do not have a lender dictating these requirements. Therefore, you can change your coverage types after paying off a loan. Many people will switch from full-coverage insurance plans to liability-only policies after paying off a car loan.

Your Driving Habits Change

The next reason to call your insurance company is to talk about changes to your driving habits. If your job required a 40-mile commute each day, your insurance plan should reflect this habit. If you switch to a work-from-home job, your driving habits will change. Therefore, you should tell your insurance company about any changes like this, as they might result in saving money on your premiums.

Your Personal Life Changes

You might also want to update your plan when things change with your personal life. For example, if you get married, you might qualify for a discount on your auto insurance. To take advantage of this discount, you must let your insurance company know that you are married now instead of being single.

If you do not experience any of these changes for a year, you might also want to call for an annual insurance checkup. Updating your policy to reflect changes is vital with all types of insurance plans. To learn more, contact a car insurance agent today.