When Is It Time To Increase Your Car Insurance Coverage?
When Is It Time to Increase Your Car Insurance Coverage?
We have all been there at one time. We let our insurance coverage renew without really looking at the coverage, not really knowing what we are covered for, and some may never even call their insurance advisor to review their policy year-after-year. Not good.
In fact, it’s just a bad habit to not evaluate your insurance coverage - particularly as the years pass by and assets increase. Well, it’s time to break those habits and know when it’s time to increase insurance coverage, and then stick to it.
When to Re-evaluate Your Policy and Increase Coverage
It’s recommended to re-evaluate all of your insurance policies and coverage when you have life changes. You can increase your assets like purchase a new home, add a new kitchen or finish the basement. You can get a promotion at work or a new job. You hit a milestone birthday.
Car Insurance Policy
In terms of car insurance, it’s time to re-evaluate your policy when you purchase a new car or add a second car to your policy. When you add a new driver to your household or make upgrades on your car that increases its value or you add safety features to it.
Keep in mind though, car insurance also protects your assets because of the liability coverage that is included in auto insurance policies. So if you increase assets, it is a good rule of thumb to re-evaluate all your insurance policies to make sure you are fully protected.
Even if you didn’t change your car, but you bought a new house or got a job promotion - it’s time to re-evaluate your auto policy.
Since liability coverage protects your having to pay out in the event of an accident, whenever you have a major event change in your life, you will probably want to increase your liability coverage above your state’s minimum for your car.
The 100/300/50 Recommendation
The recommended limit for most is 100/300/50, meaning $100,000 in coverage for bodily injury per person, $300,000 for bodily injury per accident, and $50,000 for property damage. This is for someone with a solid driving record the whole time they have been behind the wheel, and typically from year-over-year, they won’t see a great amount of change in premiums.
Keep Limits At or Slightly Above Total Asset Amount
Since we need to keep limits of coverage at or slightly above our total asset amount, if you start increasing your assets, you will want to increase the limits, so you avoid ever paying out of your own pocket.
We've Got You Covered
As part of Covered’s service and renewal policy process, our Customer Service Team will actually start the review process for you on your rates prior to your policy renewal. Where you come in, is letting us know when your assets change as they happen, so by the time our team begins reviewing for any rate changes, we can also include increases in your assets to ensure you are completely protected.