At least once a year, it's a good idea to pull up a copy of your current auto insurance policy and review it. After all, your driving and coverage needs can change a lot in a year — so taking the time to revisit your policy gives you an opportunity to make any changes that may be necessary. As you review your coverage, there are a few specific things you'll want to look at.
Your Coverage Amounts
Start by looking at the specific types of coverage you currently carry, as well as their coverage limits. This should include your bodily injury protection, property damage protection, and/or personal injury protection (which is required to some extent in all states). You'll also want to review any comprehensive and/or collision coverage; you may have been required to carry this coverage when you first bought your car, but if your car is now paid off, it may make sense to reduce or even get rid of this coverage to suit your needs.
Your car insurance deductible is the amount of money you'll have to pay out of your own pocket before your insurance benefits kick in. Make sure that you're still comfortable with your deductible. If it seems too high for you to comfortably afford, you may want to consider lowering it in exchange for slightly higher monthly payments. Likewise, you can reduce your monthly payments by increasing your deductible slightly.
Personal auto insurance companies offer all kinds of add-ons, ranging from rental car reimbursement coverage to roadside assistance coverage. Make sure that you have the add-ons that suit your driving needs, but don't pay for anything you don't need. For example, if you already have a roadside assistance plan through a third party, you'll want to make sure you're not paying for one through your insurance company as well.
Take time to review any discounts that are currently applied to your policy premium. It's also a good idea to contact your insurance agent at least once a year to find out whether there are any new insurance discounts you may qualify for.
A yearly checkup with your personal auto insurance policy is the best way to make sure that your policy reflects your current needs. If you need to make any changes to your policy, be sure to contact your auto insurance agent directly for the guidance you need.