Adjusting Your Auto Insurance Policy
An auto insurance policy is not a static line of coverage. Oh sure, it can be, but it really shouldn’t be. After
all your life changes, as do the medical and liability expenses that can accompany an accident.
This means that you must make an effort at least annually to make adjustments to your auto insurance
policy in order to ensure that it is as effective and accurate as you need it to be.
Annual Auto Insurance Adjustments to Consider
Adjust your average annual miles driven: Your insurer needs to know about how many miles
you drive per year in order to assess what kind of risk you pose to them. Every year, make sure
you report any major changes to them.
Take advantage of applicable discounts: You can get discounts when you add anti-theft
devices to your car, such as alarms and steering wheel locking devices. In addition, some apps—
like the State Farm iPhone app, Steer Clear—offer drivers discounts when they are downloaded
and utilized. And don’t forget the discounts you get for taking defensive driving classes. Every
year before you renew, consider which of these discounts you might now qualify for.
Add uninsured motorist coverage: If you don’t already have uninsured or underinsured
motorist coverage, then you need to consider adding it to your policy. Without it, you could be
stuck with some major bills after an accident with an uninsured or underinsured motorist.
Adjust your limits: Your limits might be fine for your risk exposure this year, but next year the
rising cost of medical care and changes in your driving habits could mean that you need to
increase your limits to help reduce your exposure. In addition, cars and other personal property
are only getting more expensive. Just another reason keeping a tight rein on your limits is so
Change your deductibles: As the years go by, your ability to support your current deductible
may change. In lean years, you might have fewer savings to commit to a deductible, and as you
pay off debt you might find you have more disposable income to put toward that responsibility.
Keeping your deductible at an accurate level for your budget will help to control your risk
exposure and your premium.
The next time your auto insurance policy is getting ready to renew, remember these points and update
your policy so that it works with your current life—not the one you had when you originally took out the