Annual Policy Review
Review your policy at least once a year, ideally when it renews. Your needs and circumstances change over time, and your coverage should reflect these changes. An annual review ensures you're not overpaying for coverage you don't need or underinsured for your current situation. Set a reminder to review your policy each year.
Major Life Changes
Significant life events should trigger a policy review: getting married or divorced, having children, buying a new home, changing jobs, moving to a new location, buying or selling a vehicle, or experiencing changes in income. These events can affect your coverage needs and may qualify you for discounts.
Vehicle Changes
When you buy, sell, or trade a vehicle, you need to update your policy immediately. Adding a new vehicle requires adjusting coverage. Removing a vehicle should reduce your premium. If you've paid off a vehicle loan, you may want to adjust your coverage levels. Vehicle modifications or usage changes also warrant a review.
Driving Record Changes
If you've had accidents or violations, your rates may increase. However, if violations or accidents drop off your record (typically after 3-5 years), you should review your policy as you may qualify for lower rates. Completing defensive driving courses can also result in discounts that warrant a policy review.
Coverage Needs Assessment
Regularly assess whether your coverage limits are adequate. As your assets grow, you may need higher liability limits to protect them. If your vehicle's value has decreased significantly, you might consider adjusting or dropping collision/comprehensive coverage. Your coverage should match your current financial situation and risk tolerance.
Discount Opportunities
New discounts may become available, or you may qualify for existing discounts you weren't aware of. Ask your insurer about: multi-policy discounts, safe driver discounts, good student discounts, low mileage discounts, anti-theft device discounts, and loyalty discounts. Regularly checking for available discounts can save significant money.