A lot can change over time regarding your requirements for vehicle insurance and advancements in car insurance policies offered in the market. Hence a time-to-time review of your vehicle insurance is a must. Reviewing car insurance is one most important steps you take towards your financial wellbeing. How? A review can help you to keep a check on what are the requirements of your car in terms of risks it is facing or might face in the coming future. It also helps you to catch an oversight of what are the new features that are offered in vehicle insurance to get the maximum benefit out of it. A timely review with your car insurance agent is suggested to have a better understanding of the happenings in the insurance market. Although, if you are planning to review your car insurance policy by yourself, then here is a step by step plan to do it like a pro.
Step 1: Review coverage offered by your car insurance
When you buy a car insurance policy, you depend on the coverage that you receive from the insurer in case of a mishap. And so it is essential to select the coverage wisely and review it time-to-time. It is not possible to review something unless you understand it completely, hence here are various types of coverage that will help you know how to review and select the best for you.
- Liability Limits – Liability limits is something that must not change. If you wish to have as coverage that you set once and forget, then this is the one. If your assets exceed, then you should consider increasing your coverage as well.
- Physical damage – There are so many factors to consider when it comes to physical damage caused to your vehicle. Physical damage consists of collision coverage and comprehensive coverage. The first thing to consider while reviewing your coverage for physical damage is a risk. Nobody knows when and how an accident can strike; it is always wise to safeguard yourself and your vehicle against it. Think of various scenarios that you may come across while deciding coverage for physical damage to your vehicle.
The next factor to consider is value. Taking into consideration that as the value of a car depreciates the need of keeping physical damage coverage diminishes. The next factor is deductibles, which is the amount agreed by the policyholder to pay to the insurer at the time of repair after a covered accident. The last thing is to review your extras to ensure they are making sense.
Step 2: Review all offered discounts
Generally, you will receive the list of possible discounts that you can avail at the time of car insurance policy renewal. Make sure you understand and get all the information about the discounts to know whether the deal is in your favour or not. Some of the significant discounts are multi-car discounts, financial stability discount and multi-policy discount.
Step 3: Review Mediclaim policy
Medical coverage requirement is something that needs to be reviewed as it keeps changing with time. If you have newly joined a job and received medical coverage or if you lost a job and medical coverage offered from the employer as well, remember all these factors will affect your car insurance. If accidental insurance is not a part of the medical policy offered to you, make sure to add it in the car insurance policy.
Reviewing your car insurance policy is not just a good idea to save money, but it can also benefit you most if and when you meet an accident. Facing such mishap is devastating, and at such time a good car insurance cover can save you from financial burden.