Assessing Your Auto Insurance Coverage in 2021
Posted on January 2021
As our lives adapt to evolving safety regulations, alternative work, and school schedules, you might be wondering how these changes impact your auto insurance.
First things first, DO NOT cancel your car insurance—even if you’re driving significantly fewer miles.
Driving without insurance can result in steep fines and license suspension. More importantly, if you’re found at-fault for an accident, you could be held financially responsible for injuries you cause. It’s not worth the risk to drive without insurance.
How to Save On Car Insurance in 2021
Drivers can save money on their auto insurance if they’re willing to shop around.
The fastest and most effective way to save on car insurance is simple: just call your insurance agent and say: “I’m looking for ways to reduce my costs. Can we review my policy to make sure I am getting the best price?”
The annual mileage on your car impacts how much your insurance costs. If you’ve stopped driving your car, changed your work situation, or drastically reduced your time on the road, it can be helpful to recalculate approximate miles driven per week/month and present that information to your insurer.
In addition to any basic discounts they may offer, life events such as getting married or turning 26 could significantly lower your premium. Got good grades? Some insurers offer a discount for that too!
Want to keep your coverage and reduce the cost? According to the Insurance Information Institute, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15% to 30%.
Finally, be sure to review optional coverages like roadside assistance and rental car reimbursement—if you’re not traveling very much, these optional coverages may not be needed.
Once you’ve finished making changes, ask your insurer to review what’s NOT covered so you understand what is no longer insured.
Assessing your coverage early this year can save you money! You can lower your car insurance costs by simply asking questions and shopping around.