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When your car insurance policy
goes into effect, the
coverages and rates are based upon your situation at the time you took
out the policy.
Your "situation" would include such factors as the type of car you
drive, how many miles you drive in a week, month or year, your age and
more.
Of course we all
know how fast our situations can change,
which is why it's important to review your car insurance policy on a
regular
basis. A change in your life could change the insurance protection you
need. Some
of the changes that could affect your policy include:
Changing jobs. This
could cause you to change your driving
habits. Maybe you're driving less and can now qualify for a low mileage
discount.
Economics and your deductible.
You may want to change your
deductible -- either up or down -- depending upon your current
financial
situation. Will you have the money to pay a higher deductible? If so,
you could
lower your car insurance costs.
A birthday. You may
be in a more favorable age class for
rating.
Adding an anti-theft device. You
may qualify for a discount.
Age of your vehicle. As
your vehicle gets older, you may
want to review your comprehensive coverage needs.
When should you
review policy? Unless something significant
happens, like you buy or sell a vehicle or add a new driver to the
policy, a
good time to review your coverages is when your policy is up for
renewal. This
could be every six months or annually.
You can do the
review with your agent or on your own. You
may also want to do some comparison
shopping to make sure you're still getting
the best value. Rates at other companies may have changed since you
took out your
current auto policy, or a new company may be doing business in your
state.
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