There are various situations which may require you to update your auto insurance policy. Very often, policy holders do not realize that they are required to update their auto insurance company when they get married, move, get a new car or need a change in coverage. These tips cover the different situations that may require you to update your car insurance policy:
Buying or Selling Your Car
Whenever you buy or sell a car you will need to update your auto insurance policy. If you purchase a new vehicle, it will not automatically be covered under your existing car insurance policy. Make sure to add the vehicle to your policy before you drive it for the first time. Same goes for a car you sell. Once you transfer the title of the vehicle and return the tags, be sure to contact your auto insurance company and remove the car from your policy. Otherwise, you will be paying to insure a car you no longer need coverage for.
A New Teen Driver
Once your teenage becomes licensed to drive they are not automatically covered under your auto insurance policy. However, as a driver in your household they are required to be listed on your policy. You should contact your car insurance agent once your teenager becomes licensed.
Marriage or Divorce
When and if you get married or divorced it is important to add/delete your spouse from your policy. If you get married and move into the same home, you are required to add your spouse as a driver on your policy. It also may be beneficial to insure both of your cars under one policy in order to benefit from combined savings. If you get divorced and separate into different places of residence, you will also want to remove your ex-spouse from your policy because you no longer need coverage for them as a driver.
If you Move
Whenever you move, you should inform your car insurance company of your date of move and official change of address. Your auto insurance rates are often based partly on address where your vehicle is garaged- so you may see some rate changes during this time.
When you pay off your car
When you finance a vehicle you are often required to carry a certain amount of auto insurance coverage which may be above and beyond what you actually prefer for your vehicle. In the event that you pay off your car loan you should review your coverage and ask your auto insurance agent if you still need the coverage your lender required. For example, some lenders and leaseholders require that a you carry full coverage while the vehicle is being financed. However, if your vehicle has depreciated, it may not make sense to carry comprehensive coverage. Your insurance agent is a good person to ask about your specific situation.