It’s a wise idea to review your coverage every time you renew your car insurance, and there are several circumstances in which you should consider modifying your policy or, when appropriate, switching insurers.
1. Your Use Habits Have Changed
If you’ve changed the frequency at which you drive your vehicle, it’ll likely make sense to modify your coverage.
Driving less often, for example because of a shorter commute, reduces your risk of being in an accident. Some insurers will adjust your rates to reflect this.
If, on the contrary, you’re getting behind the wheel more often, then your risk of being in an accident has, consequently, increased. You will need to notify your insurance company what your new commute distance is and your estimated yearly usage.
Some companies offer a discount if you install a device in your vehicle that records your driving habits and usage. This involves installing a telematics device that gathers information and reports it back to the insurance company.
2. You’ve Modified Your Car
If you upgraded your car in a way that increases its market value or changes its performance, you must notify your insurance company to ensure you are properly covered.
3. Your Car Is Getting Old
If your vehicle is reaching the end of its useful life, you may want to consider dropping your comprehensive and collision coverage and keeping only your liability coverage, which is the minimum coverage you’re required to have by law.
Comprehensive covers your vehicle for fire, theft, vandalism, hail, windstorm, etc. Collision covers damage to your car in an accident where you were at fault and damage resulting from a hit-and-run. It can also cover your vehicle should you be in an accident that is not your fault, but the third party has no insurance coverage.
If you don’t plan on driving your car for much longer and it has little resale value, you may decide to forgo these protections to reduce your insurance rates.
Car Insurance Discounts In Edmonton
At MBS Insurance Brokers Ltd., we’re committed to finding you a car insurance policy that corresponds to your needs and offers the best rates possible. Moreover, we offer discounts of up to 50% when you bundle insurance policies or when you meet certain criteria related to driving record, age (for example, being over 50), occupation and more. Contact us today to get a personalized quote.