Buying car insurance is not like buying a car. You don’t choose a policy and then expect it to meet your needs for many years to come. Unfortunately, that is how many people view their policies. At Homewood Insurance Agency in Madison, we want to shine light on this misconception and outline five different reasons that it may be time to reevaluate car insurance coverage.
1. You Bought Your Insurance Online
It seems so easy, doesn’t it? Just click a few buttons, fill out a form, name your own price, and accept your new car insurance policy. As simple as it may seem, you missed one important detail – there was no licensed agent there to help you make the right choices. How do you know you purchased the type of coverage you need with limits high enough to protect you if you are involved in an accident? An agent can ask all the right questions and provide you with advice when choosing your coverage. When a crisis hits, your agent is someone you rely on to help you through it. Not to mention, your agent continues to evaluate your coverage options to ensure you continue to receive an excellent value for the coverage you need.
2. Your Agent Works for an Insurance Company
Having an agent is not enough; look for an independent agent who is not committed to any particular insurance company. If you shopped for coverage from an agent who works for an insurance company, such as State Farm, American Family, or Farmers, you may have spent too much. Captive agents only have access to the insurance products offered by the company they work for. They do not have the option to shop around and compare rates and coverage solutions from other companies. For that, you would have to contact several agents – or work with an independent insurance agent that represents many companies.
3. You Bought Your Policy Based on Price, Not Coverage
There is much more to an insurance policy than the price you pay for it. Any cut-rate insurance company can offer you a basic, no-frills insurance policy that barely meets Wisconsin requirements. What happens, though, when you need to file a claim?
For example, inadequate property damage limits could leave you broke. Considering that Wisconsin’s minimum property damage coverage is only $10,000, if you were to be found responsible for hitting somebody’s new Chevrolet Silverado 1500, you might end up around $50,000 short when it comes time to paying for that loss. Do you know where the shortfall is coming from? Either your savings, retirement, or your future earnings.
Sure you saved some cash on your premiums, but is the short-term savings worth the risk?
4. You Don’t Know What Types of Coverage You Have
If you do not know how much or what type of coverage you have, you are overdue for an insurance evaluation. Here in Wisconsin, drivers need a number of coverage types to be fully protected both on and off the road. Examples include:
- Liability
- Collision
- Comprehensive
- Medical Payments
- Uninsured/Underinsured Motorist
- Emergency Assistance Coverage
- Rental Car Reimbursement
Your Insurance independent agent can help explain each type of coverage available to you and make recommendations based on your individual risk profile.
5. You’ve Experienced Changes to Your Driving Habits or the Number of Drivers Within Your Household
If anything has significantly changed within your household since you last purchased car insurance, you may need to sit down with your agent to discuss how your insurance needs may have changed. Whether a teen driver left for college, your spouse decided to stay home with the kids, or you moved to a new neighborhood, there are many factors that can contribute to the level of coverage you need and the price you will pay for insurance in the future.
