Have You Updated Your Car Insurance Policy?

Updating your car insurance policy is something you will probably need to do periodically.  When you move, get married or divorced, get a new car, or want to add another driver to your policy you will need to update your policy.  Updating your policy can lead to higher or lower rates, or it could leave your rate at the same place.  Still, it is important that you update your policy whenever it is necessary to make sure that your insurance company will still cover you.

Getting Married or Divorced

If you get married and live in the same house as your spouse, you must add him or her to your car insurance policy as an insured driver.  If your spouse also has a car, it is probably beneficial to combine your policies into one family plan style.  This could give you a discount on your rates. Adversely, if you get divorced, you will want to remove your ex-spouse from your car insurance plan as you no longer need to insure them as a driver in your household.

Moving

Whether you are moving across town or across the country, your car insurance company needs to know.  Not only will your rates possibly be effected by this moved but, if you do not inform your insurance agency in a timely fashion, they may not be required to cover you should you be involved in an accident in the time between moving and informing them. If you are moving to a different state you should make sure that your car insurance will cover you in the new state.  Make sure to inform your agency about the date of move and your new address as soon as you can.

Paying Off Your Car Loan

When financing a car loan, the financer of the loan will probably require you to have additional car insurance above the state mandated requirements. Once you pay off the loan, it will be up to whether or not it is worth it to maintain the additional insurance.  Talk to your insurance agent about what types of insurance you are no longer required to have in order to determine if your car’s inevitable depreciation has made some of the insurance unnecessary.

Adding a Teen Driver

If your child has recently become licensed he or she is not automatically added onto your car insurance policy.  However, you are required to add them to the policy as an insured driver living in your household.  Talk to your insurance agent about the most cost efficient way to insure your young driver and remember that teen drivers can qualify for discounts based on their academic performance in school.

Buying or Selling Your Car

If you buy a car, you need to tell your insurance agency; do not assume that your old plan will automatically cover your new car.  Similarly, when you sell your old car, you need to take it off of your car insurance policy, otherwise you will continue to pay for a car that you no loner own or drive.


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