Automatic renewal is an easy method to guarantee your insurance protection carries on over the years. While automatic renewal isn't bad, you shouldn’t allow it to happen before you have a chance to look over the insurance policy coverage options. When doing so, be sure to evaluate the following 3 questions. Even if you answered the same questions last year, you need to re-evaluate each of these 3 terms each year to see if your insurance needs changing.
1. Do Your Deductibles Need Changing?
When you first signed up for auto insurance, you may have done so with the goal of making your monthly premium as low as possible. This could have resulted in you making your deductibles very high and so, you just crossed your fingers that you would never have an accident. But, a year late, you may now find that you no longer want to take that risk and you can afford to spend a little more each month in order to get a lower deductible. If so, you need to address this before you policy auto-renew and you automatically accept your deductibles as-is. Make sure to pay attention to your deductibles and adjust them when the time comes so you are always protected completely. Let your insurance cover you and not put you at chance of spending money you don't have.
2. Are your limits still sufficient?
The coverage limits you put on your insurance when you first applied for your policy may have been accurate then, depending on the age and worth of your vehicle and debts/savings you had at the time you took out the policy. But through the years, liability-covered costs including healthcare payments and lost wages can rise and your assets can grow in value. If you don't change these limits prior to your policy's auto renewal, then you may be at chance of being in an accident and not being fully protected or cared for.
3. Are all insurable accidents taken care of?
If you don't have a lot of savings, or if your vehicle is a good many years old, you may opt out of certain coverages in your insurance. For example, when you first applied for your insurance policy, you may have only gotten the state-required minimal auto insurance limits instead of higher limits and features that might better protect you, but cost more money. But, as your financial status changes, you may find out that this decision can come back to haunt you as you find the minimal coverage doesn't cover an accident and it drains your savings. In order to ensure this does not happen, adjust your insurance limits before your policy auto renews and make sure that your insurance completely covers you. As you grow in your job and your savings grows, your auto insurance policy should also reflect this. Find a policy that you can afford, but that completely covers you in your present financial status.
Of course, you may have decided against some of the coverages because they were unnecessary at the time you applied for insurance. One example is, when you initially signed up for your auto insurance policy, you may not have signed up for uninsured motorist coverage. While it is unfortunate that you need to have this coverage on your insurance, it is still necessary. You might have made it through this past year without an accident, but it is always a chance of being involved in an accident with someone who does not have insurance or not enough insurance. In order to prevent situations like this from occurring, you need to re-evaluate your insurance policy each year, looking for these types of changes.
If your Meridian auto insurance policies are getting ready to renew, or you simply want an insurance review to help ensure that you have the best insurance possible, give Pearson & Company Insurance a call at 601-202-0282. We are ready to help you find the insurance that is right for you.