20 Dangers of Not Reviewing Your Car Insurance Policy at Renewal

We are all prone to forgetfulness, and some things may fall to the wayside, especially when we have a lot on our plates. However, not doing a full car insurance review of a policy from start to finish at each six-month renewal term shouldn’t be one of them. If you’re not checking your entire auto policy for agent mistakes and changes to your car and your lifestyle, you may be overpaying, underinsured or simply overdrafting your checking account. Renewal is also a great time to reconsider certain types of coverage, or else you may end up with a financial dilemma. Comparing insurance quotes with a list of insurers to get the best rate is also advised. Here are 20 dangers of not reviewing your car insurance policy at renewal.

1. You’ll have to pay for the coverage, even if you don’t remember adding.
2. You may go over budget unintentionally for not spotting a mistake.
3. If you have auto pay, you may overdraw on your checking account if you didn’t realize you had unwanted coverages added on.
4. If you have auto-renewal, you may experience an increase in rate without knowing it.
5. If you don’t have certain coverage that you wanted, let’s say collision, and you have an accident that was determined to be your fault, you will be in for an unpleasant surprise of having to pay for your own repairs.
6. If you have the wrong coverage limits, let’s say bare minimum state requirements, instead of the higher limit you wanted, you may have to pay for damages and injuries out of pocket with a remaining balance.
7. If you didn’t add uninsured motorist coverage and you have an accident with an at-fault person whose minimum requirements don’t cover your now totaled car, you may have to spend some of your own money replacing that car.
8. If you forgot to tack on comprehensive coverage or the agent left it out, you won’t get a cent if your car is stolen or vandalized. You’ll still have to pay your car note and you’re on your own to replace the car or have it repaired.
9. You may end up having a type of coverage you don’t need at all, like mechanical breakdown coverage, when you already have a fully loaded warranty.
10. If the agent signed you up for personal auto but you’d asked for commercial car insurance, you won’t get your claim paid if the car is in use while you’re conducting a business-related task.
11. You may want certain coverage only for certain seasons, like comprehensive coverage the months you normally experience hailstorms in your area. Remember which months those are so you can remove the coverage later to avoid paying extra during the months with fewer risks.
12. Your child may go away to college or move out. If you forget to remove them from your household members, their driving history or young age may put a ding on your insurance rate.
13. If your marital status changed and you forgot to mention that to an agent during a review at renewal, you will not reap the benefits that married drivers get in lower rates.
14. If you didn’t have your marital status removed after a divorce, your spouse may still be on your car insurance policy. If they have a terrible credit score or accidents on record, you may be paying too much for car insurance.
15. Your car insurance may have excluded someone who is back living with you and uses your car. If they have an accident, they won’t be covered.
16. Your deductible for collision and comprehensive may be too low or too high. If you need some help paying monthly premiums, increase the deductible amount so you pay less each month. If you don’t have enough to cover an existing deductible if you have an accident, you may want to lower the deductible, but expect a higher monthly cost.
17. You may be missing out on some great discounts if you’re not reviewing your policy at least twice a year upon renewal. Your age may warrant a discount or an accident may have fallen off. You never know which price breaks fit your profile until you ask!
18. You may be driving far less than when you last reviewed your car insurance policy. Most insurers offer discounted rates for people who drive 6,000 miles or less. Find out if your annual mileage fits the criteria.
19. Your car insurance may not automatically renew, and if you’re remiss in checking your mail and email, you’ll have no car insurance, which is against the law and will hurt you financially too, because you’ll have no coverage in a car accident and you’ll have a lapse in coverage.
20. Your car may lose value and without reviewing your policy you may be spending more in collision and comprehensive than the car is worth.

For all the same reasons that you should review your auto insurance policy at each renewal term, it’s equally important to shop around as well. Each change that you make to a policy will affect your rate so why not see if you can beat the one you’re paying now, especially if the service is free!