When should you update your car insurance coverage

Auto Smarts

If you’re anything like most people, you may only speak with your insurance agent or review your car insurance when you’re paying a bill or filing a claim. If it’s been a while since you’ve looked at your policy though, you could be missing out on new discounts, or even have developed gaps or overlaps in your coverage.

When Life Changes

Big life changes ripple through all aspects of your life, even your insurance coverage.

For instance, if your son just got his driver’s license, odds are you’ve added him to your existing policy. Did you update your insurance though?

A new, young driver can sometimes lead to higher premiums, but it might also warrant an update to your limits. Without an update, your current limits may not be enough to provide the coverage you want for the whole family.

The good news is you could qualify for a series of discounts too, like a “Good Student,” “Distant Student,” or “Driving Training” discount.

You won’t know until you talk to your agent though.

All types of life changes may cause gaps or overlaps in coverage, as well as qualify you for additional discounts. That’s why it’s important to speak with your agent and update your coverage after any big life changes like:

  • Getting a new job – changes in your commute can change your risk factors and possibly your premium.
  • Moving to a new house – a new location can affect your premiums or qualify you for a “homeowners” discount. You can even bundle your Home and Auto policies for more savings.
  • Getting married – changes in your marital status can have changes in your coverage, especially if your adding / removing your spouse to your policy.
  • Having children – kids are a blessing and can also have effects on your coverage. New drivers in the household, and on your policy, mean it’s time to update your coverage.

To keep your policy updated, and make sure you’re getting the coverage you want, schedule a Farmers Friendly Review each year, and explore your policy with your agent.

 

Before Buying a New Car

Recent cost of ownership data suggests insurance can add as much as 17 percent to the cost of a new car. That’s why if you’re shopping for a new car, don’t forget to consider how it might affect your insurance policy.

It might seem backwards to update your coverage and check with your insurance agent before you start shopping for a new car, but knowing premium levels beforehand can help influence your buying decisions. For instance, if you knew the premiums would be higher for the luxury edition than the standard trim, would it affect your choice?

 

After Buying a Car

Before you driver it off the lot, make sure you’ve updated your insurance coverage to include your new car. Dealers usually take care of that, but you can also call your insurance agent and let him/her know about your new buy, or update your policy online.

 

Once you’ve talked to your agent about insurance and narrowed down your vehicle choices, be sure to take advantage of the Farmers Car Shopping Service, offered by TrueCar. This exclusive service can help you save money and make the car buying experience much easier. In fact, using the Farmer’s Car Shopping Service can save you an average of $3,221 off MSRP*!

 

 

* Between 7/1/13 and 9/30/13, the average estimated savings off MSRP presented by TrueCar Certified Dealers to users of TrueCar powered websites, based on users who configured virtual vehicles and subsequently purchased a new vehicle of the same make and model listed on the certificate from Certified Dealers, was $3,078, including applicable vehicle specific manufacturer incentives. Your actual savings may vary based on multiple factors including the vehicle you select, region, dealer, and applicable vehicle specific manufacturer incentives which are subject to change. The Manufacturer’s Suggested Retail Price (“MSRP”) is determined by the manufacturer, and may not reflect the price at which vehicles are generally sold in the dealer’s trade area as not all vehicles are sold at MSRP. Each dealer sets its own pricing. Your actual purchase price is negotiated between you and the dealer. Alt: Neither TrueCar nor Farmers sells or leases motor vehicles.

 

 


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