Budget Concerns: How Much Insurance is Enough?

Budget Concerns: How Much Insurance is Enough?

5 Signs You Need To Update Your Car Insurance Policy

Dustin Duncan

It is every driver's responsibility to obtain adequate car insurance before operating a vehicle. However, many drivers make the mistake of not reviewing their policy from time to time. Your circumstances may change and your policy should reflect those changes.

Here are a few signs that you need to update your car insurance policy right away.

You Need to Add a New Driver

When you have to put an additional driver on your car insurance policy, it is important to notify your insurance agent right away. If the driver gets into an accident and is not on your policy, your insurance company will not pay for the damage. With another driver on your policy, you may be required to pay higher premiums each month. 

Your Credit Rating Has Increased

If your credit score has significantly improved recently, you may be able to get a discount on your car insurance policy. The higher your credit score is, the more responsible your insurance company will see you. They may think you will be less likely to file a claim and charge you less for your monthly premiums.

You Have Purchased a New Vehicle

Whether you have recently purchased another car, motorcycle, or boat, you need to let your insurance company know. After all, you want your new vehicle to be properly insured. 

You Have Been Driving Fewer Miles

Have you have significantly reduced your mileage lately? If so, you might be paying too much for your auto insurance premiums right now. If you do not get behind the wheel that often, you have a lower chance of getting into a car accident. Therefore, your insurance provider may offer you cheaper insurance for being low risk.

You Moved to a New State

If you have just relocated to a new state, you have a lot of tasks to take care of, including updating your car insurance policy. Every state has different requirements on car insurance and you should make sure that your policy follows those rules. 

Begin by contacting your insurance company and informing them about your move. They will help you make the necessary changes to your insurance policy. If your current carrier does not operate in your new state, you will have to find another insurance provider.

If you need to make changes to your current car insurance policy, you should get in touch with your insurance provider as soon as possible.


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About Me
Budget Concerns: How Much Insurance is Enough?

Insurance is something that I carry in the hopes that it never has to be used. Along with life coverage, I also have low cost auto insurance and a health plan through my employer. I'm toying with the idea of adding some additional coverage, just in case something happens and I'm no longer around to take care of my family. The question that is on my mind is how much insurance is enough? Do I really need more, or would it be better to cultivate other assets that my loved ones can draw on if needed? If you are in the same boat, let's journey together for a while. Read on and I'll explain what I'm trying and why. Together, we can figure out when it is time to add more coverage and when enough really is enough.