TryAutoQuote
When to Review Your Auto Insurance Policy: A Yearly Checklist

When to Review Your Auto Insurance Policy: A Yearly Checklist

When to Review Your Auto Insurance Policy: A Yearly Checklist

Your auto insurance needs change over time, but many drivers set their policy and forget about it. Regularly reviewing your policy ensures you have the right coverage at the best price. Here's when and how to review your auto insurance policy.

Annual Review: A Must-Do

At Minimum: Review your policy once per year, ideally around renewal time. This gives you a chance to:

  • Compare rates from other providers
  • Update your coverage based on life changes
  • Ensure you're taking advantage of all discounts
  • Verify your information is accurate

Life Events That Require Immediate Review

1. Getting Married or Divorced

Marital status affects insurance rates. Married drivers often receive discounts, so updating your policy can save money.

2. Moving to a New Location

Your location significantly impacts your rates. Moving to a new city or state requires:

  • Updating your address
  • Checking if your current provider operates in the new area
  • Comparing rates in your new location

3. Buying a New Vehicle

When you purchase a new car, you need to:

  • Add the vehicle to your policy
  • Adjust coverage levels
  • Consider gap insurance if financing
  • Compare rates for the new vehicle

4. Adding or Removing Drivers

Adding a teen driver or removing a driver from your policy requires immediate updates to ensure proper coverage.

5. Changes in Employment

  • New Job: May change your commute distance
  • Work from Home: May qualify for low-mileage discounts
  • Retirement: Reduced commute may lower rates

6. Significant Life Changes

  • Birth of a Child: May need to add future drivers
  • Teenager Getting License: Will significantly impact rates
  • Elderly Parent Moving In: May need to add them as a driver

Policy Review Checklist

Use this checklist when reviewing your policy:

Personal Information

  • Name and address are correct
  • Contact information is up to date
  • Marital status is accurate
  • All drivers are listed correctly

Vehicle Information

  • All vehicles are listed
  • Vehicle details (year, make, model) are correct
  • Primary use is accurate
  • Annual mileage estimate is current

Coverage Review

  • Coverage limits meet your needs
  • Deductibles are affordable
  • You're not over-insuring old vehicles
  • You have adequate liability coverage

Discounts

  • You're receiving all eligible discounts
  • Good student discount (if applicable)
  • Safe driver discount
  • Multi-policy discount
  • Low mileage discount
  • Anti-theft device discount

Cost Analysis

  • Compare rates from at least 3 providers
  • Review total annual cost
  • Consider payment plan options
  • Evaluate if bundling saves money

Questions to Ask During Review

  1. Am I paying for coverage I don't need?

    • Consider dropping collision/comprehensive on very old vehicles

  2. Do I have enough liability coverage?

    • Ensure you have enough to protect your assets

  3. Are there new discounts I qualify for?

    • Ask about all available discounts

  4. Has my driving situation changed?

    • Update mileage, commute, or usage information

  5. Can I save by adjusting my deductible?

    • Consider raising deductible if you can afford it

Red Flags That Signal You Need a New Policy

  • Rates increased significantly without explanation
  • Your provider doesn't offer discounts you qualify for elsewhere
  • Customer service is poor or claims handling is slow
  • You've had major life changes and your provider hasn't adjusted
  • You find better rates elsewhere with similar coverage

How to Compare Policies

When shopping for new coverage:

  1. Get quotes from multiple providers
  2. Compare apples to apples - same coverage levels
  3. Read reviews of insurance companies
  4. Check financial ratings (A.M. Best, Standard & Poor's)
  5. Consider customer service reputation
  6. Review claims process and satisfaction ratings

Tips for Annual Review

Set a Reminder

Mark your calendar for your policy renewal date and set aside time to review.

Gather Information

Before reviewing, gather:

  • Current policy documents
  • Recent driving record
  • Vehicle information
  • Life changes since last review

Be Proactive

Don't wait for your renewal - review whenever you have major life changes.

Ask Questions

If something is unclear, ask your agent or insurance company for clarification.

Conclusion

Regularly reviewing your auto insurance policy ensures you have the right coverage at the best price. Life changes, and so should your insurance. Make it a habit to review your policy annually and whenever significant life events occur.

Don't wait until renewal - compare quotes today to see if you can save money on your auto insurance.

← Back to Blog