Car insurance information is important to keep updated. You never want to run into a situation where you need coverage, but inaccurate information causes issues. Here are five circumstances that would require you to update your car insurance details with your provider.
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When You Buy a New Car
The most obvious situation for changing your car insurance policy is when you purchase a new car. Many drivers forget to do this, or they wait a while after the purchase to make the change. Your insurance should be updated before you even drive your new car off the dealership lot. Most car dealerships will help you with this step, but it’s always a good idea to call your agent and double-check that your new vehicle is properly covered.
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New Licensed Driver in the Family
Any time a new person starts driving your car, you’ll want to update the insurance policy. Don’t get caught up in the excitement of one of your kids passing their driver’s test and forget to add them to your policy. You should even contact your insurance provider when your teenager gets their learners-permit. Having a young, new driver behind the wheel can change the price of your coverage, so you want to make sure you know what’s changing.
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Decreasing Value of the Car
As you drive your car around, the value is constantly decreasing. Even if you take good care of your car, any added mileage will decrease its value. Regularly updating your insurance policy to match the current value of your car can save you money. Certain types of coverage additions aren’t necessary for older cars, so you’ll want to make sure you’re not still paying for the same collision coverage you purchased eight years ago when your car was brand-new. Basically, you never want to pay to insure a more expensive vehicle than the one you actually drive.
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Change in Marital Status
Whether you get married or get a divorce, the regular drivers for your vehicle will change. Newly married couples should make sure they both contact their car insurance carriers to add their new spouse to their coverage. You never want someone regularly behind the wheel who isn’t insured with your policy. Some policies actually offer lower premiums to married couples, so you might also save money.
In the event of a divorce, it’s a good idea to remove your former spouse from your coverage. An added driver may have increased the price of your policy.
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Change in Home Ownership
Homeowners can sometimes benefit from policy discounts, so if you buy a new house, make sure you alert your carrier. Some home insurance and car insurance policies can even be bundled together. If you move to a new house in a different location, your premiums might change based on where your new home is.
Staying on top of your car insurance coverage is a great way to avoid any sticky situations in which you aren’t properly covered. Don’t get stuck without coverage or paying for more than you need, follow these tips for good practice.
Image via Flickr by angrykarl | CC BY 2.0.
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