Many car insurance companies set up policies to renew automatically each year. If you pay for your plan monthly, quarterly, or every six months, this can occur. You may get a message about the new coverage or features, perhaps a new cost, but the plan goes right into place when the last one ends. This is good in that it ensures your coverage remains in place. However, auto-renewals can cause a few problems, too. Take a closer look.
Is Your Coverage Still Accurate?
One of the problems with auto-renewing auto insurance is that it does not create an opportunity for you to update your coverage. If you react soon enough after receiving the renewal notice, you can make changes.
However, forcing yourself to take a closer look is important. You may want to schedule a consultation with your insurance company, for example, to gain insight here. Specifically, you need to consider:
- How much auto insurance coverage the policy provides for your vehicle; has your vehicle's value fallen since last year? You may not need as much.
- How much liability insurance is in place. If you had claims this year, was the coverage enough or perhaps too much?
- The deductible's affordability; does it still match your budget and needs?
Take a closer look at anything else that changed this year. Are you using your vehicle for business? Do you have another driver in the home that should be on your policy? Take into consideration each one of these factors before you decide to renew.
Ask About Costs, Too
Most car insurance policies increase in costs annually. This is quite normal and expected due to the cost of living increasing. However, this does not mean you have the most affordable policy available. It may be time to consider getting additional quotes on auto insurance from other providers. Doing so could help you save money overall. The coverage and features may be the same, but the costs could be significantly less. Your agent can usually help you compare all of the policies within their offerings. You can then select the one with the best policy.
Take the time to carefully select auto insurance that fits your needs. Contact your Stuart FL auto agent about your needs. Before you allow the policy to auto-renew, find out if that is the best decision for your situation. Making a few adjustments ensures your policy fits your lifestyle, vehicle's value, and your overall risks. Why pay more for insurance that does not fit those needs?