7 Reasons Why You Should Regularly Review Your Auto Insurance Policy

Berry Mathew

Updated on:

7 Reasons Why You Should Regularly Review Your Auto Insurance Policy

With the Advent of covid-19, most people have had to adjust their lifestyles. Between working multiple jobs and moving and selling your assets, it is easy for things to slip under the cracks. 

Auto insurance coverage updates are one of the most important things for car owners. 

With your needs changing, getting the right auto coverage ensures you and your family are cared for.

That is why you need to continuously review your car insurance since updates guarantee financial security in case of accidents. You can also monitor your premiums, ensuring you only pay for what you need, which saves you money down the line.

Read on to learn why you need updated auto insurance coverage.

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  1. Wear and tear

Like any other machinery, cars are affected by wear and tear. With the changing conditions of your vehicle, your insurance claim reduces.

Most policies have a wear and tear exclusion, meaning any damage caused by natural deterioration is not covered. 

Your agent should remind you of what you can reasonably do to reduce or prevent damage to your car.  

If you bought a car, then premiums need to reflect the current condition of your vehicle. 

Conducting regular assessments and policy updates will ensure you are paying the right amount.

  1. New Car, New Policy

Purchasing a new car affects your insurance rates. 

Insurance is cheap when you use perks such as “new purchase discounts.” There are other discounts, such as those due to unique safety features.

Always ask your agent about discounts you are eligible for during your insurance review. Who knows, you may be sitting pretty when you’re actually eligible for an amazing discount.

  1. Lifestyle Shifts

Some life changes are inevitable. Why pay more when you just recently shifted to remote work?

The changes in your lifestyle should be reflected in your policy. Seek advice on short-term policies when there is less driving from home to work. Short-term innovative premiums get you covered while keeping some change.

Other lifestyle changes that should be reflected in your policy include:

  • Adding or removing a vehicle from your policy
  • Suspension of your driver’s license
  • When you hire a new personal chauffeur

Knowing the things in your life that need reporting is crucial and is one of the reasons to review your policy regularly.

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  1. Don’t Be Overcharged

With the current fiscal nightmare, most people are looking to cut costs. So is your insurer!

Always check your past policy plan and compare it with the new one to ensure you are not overcharged.

Immediately seek clarification if you notice a slight discrepancy in pricing or charges you need help understanding.

Our tip is to always compare company premiums and packages for a better cost-effective deal. 

  1. Location Impacts

Moving between neighborhoods may be beneficial in your auto policy. 

If your area has numerous claims made,  then the rates will likely increase. 

Different rates can be charged based on location influences, including cases of:

  • Crime rates.
  • Vehicle break-ins.
  • Stolen vehicles. 
  • Fraudulent claims.
  • Population density. 

No matter how clean your driving record is, you will pay more or fewer premiums depending on your home Zip code. 

On the positive side, safer neighborhoods with fewer claims and risks can cut your premium rates. So you definitely want to review your policy after a move.

  1. State Requirements

If you move to another State, your main worry can be “whether your auto policy provider should change?”

Well, several insurance providers work across state lines. However, they need your new address. Failure to provide the new address can quickly amount to insurance fraud. 

You also need to know other state requirements, such as PIP limits, parking risks, and minimum requirements that can affect how much premiums you pay. 

Being updated on state regulations keeps you from committing insurance fraud or losing your claim. 

So take advantage of the standard 30 to 90 days given by States to update your auto policy.

  1. New Drivers

New drivers come with policy changes. 

Most people consider professional drivers but ignore family drivers. You want to avoid the tag of war with insurers because of failing to include your recently graduated driving relative in the auto policy. 

Having new potential drivers should be reason enough to ensure your policy is up-to-date.


It’s not enough to simply buy coverage and leave it there. You also want to protect your investment and ensure that your insurer will have no problems coming to your aid when the time comes.

That happens if you’re fully aware of factors that can affect your policy. You will be able to stay in the know when you regularly review your car insurance policy.