New Year, New Auto Insurance: Expert Peter Vitale Weighs In
2021 is finally here! Did you make any resolutions for the new year? If you’re like many people, you’re probably looking to gain better control over your budget and spending in 2021 and beyond. While there are lots of ways to save money, one of the best ways is to revisit your insurance policies and shop around for new coverage. Simultaneously, it may be a good time to consider whether your auto insurance coverage is enough.
When was the last time you revisited your auto insurance coverage? If it’s been more than a year, you’re overdue for a careful review of your policy. Not sure where to begin? Michigan-based insurance expert Peter Vitale of Bloomfield Insurance Group has you covered with some practical tips and guidance.
2021 Goal: Review Your Auto Insurance Policy
The beginning of the new year is an excellent time to review your insurance policy. This is a time when you’re already likely to be reviewing your budget and setting financial goals for the new year.
Contrary to what you may have been led to believe, you are under no obligation to keep your current policy through its end date. Even if you just renewed your auto insurance policy in December, you can always cancel or transfer your coverage with no penalty. You may receive a refund for any unused portion of your policy that you’d already paid.
Thus, you should consider the new year as an excellent opportunity to think about your safety on the road. If you’re sticking to your newly made New Year’s Resolutions, why not prioritize your safety and wellness on the road as another Resolution?
What to Look For in a Car Insurance Policy
Before you start shopping around with different auto insurance carriers, it’s important to know where your current coverage stands. According to Peter Vitale, proactive customer education is key to ensuring that you are well protected on the road. Take some time to review your current auto insurance policy and its specific coverage limits, especially as they relate to:
- personal injury protection/liability
- comprehensive/collision coverage
- property damage protection
You’ll also want to make note of your current out-of-pocket deductible, which is the amount you’re responsible for paying before your benefits kick in. Keep in mind that it is not uncommon to have separate deductibles for liability coverage and comprehensive/collision coverage-and these deductibles may be in very different amounts.
When reviewing your current policy, you’ll also want to look at any insurance add-ons you may have, such as:
- rental car reimbursement
- roadside assistance
- accident forgiveness
Once you have a better idea of where your current policy stands, you can begin shopping around for quotes from different carriers and be sure that you’re comparing apples to apples. As you begin comparing insurance quotes from different companies, be sure to look not just at the coverage types and amounts, but other important factors as outlined below.
Customer Service and Claims Support
Insurance coverage doesn’t do you much good if it doesn’t come with excellent customer service and claims support. Before you make the switch to a new insurance carrier, take some time to get to know what their customer service is like. How easy is it to get in touch with an agent when you have a question? Will you have a dedicated agent assigned to your policy? If so, will you have a direct line of contact with that person? Ideally, you’ll want to make sure you can get a hold of somebody from your insurance company 24 hours a day, seven days a week.
You’ll also want to find out more about the specific process for filing a claim with a carrier before you decide to make the switch. If you’re in an accident, for example, what kind of documentation will you need to provide to your agent? How long can you expect your claim to take? These are all important considerations that should go into your decision.
Promotions and Discounts
Different car insurance companies may also offer different discounts and promotions to help you save money. Take some time to familiarize yourself with the discounts offered by any given company and what you’ll need to do to prove eligibility.
You’ll also want to find out if discounts are continuous or if they can only be redeemed for a certain length of time. For example, many insurance companies offer an enticing discount to new policyholders but only for the first policy term. Make sure you understand the terms of your savings and discounts so you don’t run into any unpleasant surprises if and when your promotional period runs out.
Ways to Save on Your Auto Insurance Coverage
No matter which auto insurance carrier you end up choosing, Peter Vitale knows first-hand that there are plenty of ways to cut down on your auto insurance costs without necessarily making drastic changes to your coverage in the process.
Report Your Annual Mileage
If you don’t drive long distances or partake in local ride-share services, you may be eligible for a substantial discount on your car insurance. Specifics can vary from one carrier to the next, but it’s not uncommon for insurance carriers to offer hefty discounts for drivers who put 12,000 miles (or less) on their cars each year.
If you work from home or otherwise don’t drive your car very often, ask your Agent about a low-mileage discount. Just be aware that you will probably need to have your odometer checked each year to ensure eligibility for these savings-and you might lose your discount for the next policy period if you go over the allotted amount.
Work on Your Credit
Did you know that your credit score can play a major role in your car insurance rates? If you have less-than-great credit, there are many reasons to work on improving your score. However, lower insurance rates can be a great incentive.
You can find out where your credit score stands by ordering a copy of your current credit report through any of the major reporting bureaus. From there, be sure to scrutinize your report and be on the lookout for any errors or mistakes. If there are errors on your report, dispute them immediately. Having a mistake corrected on your report can have an instant and positive impact on your credit score!
From there, take small steps to boost your credit, such as:
- paying down high-interest balances as soon as possible
- maintaining low credit card utilization (30% or less, ideally)
- making bill payments on time
While it takes time to build a credit score, you might be surprised at what a difference even a few points can make in your insurance rates!
Enroll in a Safe-Driving Course
Some insurance carriers offer discounts to drivers who complete accredited safe-driving courses. While it may cost you some money up-front to enroll in one of these courses, a safe-driving class can teach you valuable skills while also saving you money on your car insurance. If you don’t have time to attend a class in-person, there are even some that are offered online. Check with your carrier for a list of approved classes to find out how much you could be saving!
Peter Vitale is Here to Help With Your Coverage Needs
Get the year off to a great start by revisiting your auto insurance policy and making sure you’re not paying more than you need to for your coverage. If you have any questions, Michigan’s own Peter Vitale and his team are here to help. You can also request your free insurance quote from Bloomfield Insurance Group to see how much you could be saving!
For more from Michigan insurance expert Peter Vitale, check out his F6S and LinkedIn pages.
Originally published at https://patch.com on January 7, 2021.
