FinanceBuzz

8 No-Brainer Reasons To Review Your Car Insurance Policy Every 6 Months

By Sandy Baker,

18 days ago

When you buy car insurance, it’s easy to “set it and forget it.” In fact, many people simply renew their policy automatically year after year and never give a second thought to their insurance coverage.

But that can be a mistake. There are many good reasons to review your policy every six months.

Here’s why taking a closer look at your policy can help you save money on car insurance and ensure you have the right coverage to meet your needs.

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1. Another insurer might offer better rates

One of the best reasons to review your car insurance coverage every six months is that you can often save money by doing so.

Before your policy comes up for renewal, gather quotes from a number of providers and see if you can get a better deal. If you find a great price, consider making the switch.

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2. Life circumstances might change

As your life changes, so do your insurance needs.

If you move to another area, it’s time to update your policy. You might pay more if there’s a higher rate of claims in your new neighborhood, or less if you’re moving to an area with lower crime.

Getting married is another reason to review your coverage. Some insurance companies offer lower rates to those who are married, as statistics show that married folks are less likely to file claims.

3. Driving habits might change

Driving habits can change over time. For example, if you take a job that allows you to work remotely — or if you retire — you won’t be getting behind the wheel for a long commute every day.

The less you are on the road, the less likely it is that you will get into an accident. If you are driving less than 10,000 miles a year, ask your insurer if it will lower your premiums.

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4. Your driving record might improve

Traffic violations and accidents can lead to higher rates. But eventually those blemishes will disappear from your driving record.

Once they do, it’s possible you'll score a better deal with another insurance company. Regularly gathering insurance quotes every six months can help you take advantage of a clean driving history.

5. Dropping some coverages on an aging car might save you cash

If your car is aging and you no longer have a car loan, it might be time to consider dropping collision and comprehensive coverage.

These coverages reimburse you for damages to your own vehicle. If you drop the coverages, you will have to pay for any repairs out of your own pocket. But over time, this can be a great way to cut your car insurance costs.

However, remember that you cannot drop car insurance altogether. Almost every state requires drivers to carry at least a minimum amount of liability insurance.

6. Making other changes might save you more money

If car insurance has become too big a burden for your budget, look for other ways to cut costs. For example, raising your deductible might reduce your premiums.

Checking for new discounts every six months also might help you to lower your car insurance bill.

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7. You might need to add a driver to your policy

Did your teen just get a driver’s license? You might need to add them to your car insurance.

Teen drivers can be expensive to insure, so gather rate quotes every six months to see if you can get a better deal.

8. You might need to subtract a driver from your policy

Conversely, if an adult child moves out of your home, removing them from your policy could lower your costs.

Let your insurer know how things have changed and see if it helps you lower your costs. Also, shop around to see if you can get a better deal.

Bottom line

Car insurance protects you when you get into an accident, or your car is damaged in another way. But insurance needs can change over time.

Reviewing your insurance policy every six months helps you make adjustments to your insurance coverage while also getting ahead financially via lower car insurance costs.