6 Reasons to Adjust Your Auto Insurance in Georgia Before Summer
If your car insurance premium leaves you burning up, you’ll want to check your auto insurance policy before the Georgia summer heat really kicks in. If you are planning on a summer road trip, it’s vital to check your existing liability amounts, additional types of coverage, and, most importantly, save some money by making sure you are taking advantage of all the discounts for which you qualify.
Read on for 6 reasons you should consider adjusting your auto insurance policy before the Georgia summer!
1. You May Not Have Enough Coverage or the Right Types of Coverage for Your Needs
Take a close look at your current auto insurance policy and understand what types of coverage you have, such as liability, collision, comprehensive, uninsured/underinsured motorist, and personal injury protection (PIP). Consider your current needs and whether your policy provides adequate coverage for your vehicle and circumstances.
An experienced agent can also help you to determine your exact needs. Consider reaching out to your agent to schedule a meeting about your current circumstances.
2. You Want to Reduce Your Premiums
Look at your premium payments and assess whether they fit within your budget. If you are struggling to afford your premiums, you may need to consider changing your policy to find more affordable coverage.
You can reduce your premiums in the following ways:
- Shop around: Consider working with an independent insurance agent to obtain quotes from several insurers and choose the one that offers the best coverage at the most affordable price.
- Bundle your policies: Many insurance companies offer discounts for bundling multiple insurance policies, such as combining your auto and home insurance with the same insurer.
- Opt for a higher deductible: Increasing your deductible, which is the amount you pay out of pocket before your coverage kicks in, can lower your premiums.
- Maintain a good driving record: Having a clean driving record with no accidents or traffic violations can result in lower insurance premiums. Avoiding accidents, speeding tickets, and other violations can help keep your premiums down over time.
- Maintain a strong credit score: In some states, insurers use credit scores to determine premiums. Maintaining a good credit score can help you secure lower insurance premiums, so make sure to manage your credit responsibly.
However, reducing your premiums may not always be a sound financial decision. Having inadequate protection can put significant strain on your personal finances since you will need to dip into your savings to cover whatever is left after your insurance pays out if you cause an accident.
3. Your Driving Habits Have Changed
If you have recently begun delivering food for a living or offering rideshare services with your personal vehicle, you may need to modify your policy or purchase a commercial auto insurance plan to protect you and your assets while working.
Some delivery services offer their own commercial auto policy to their freelance drivers, while smaller shops may require their drivers to purchase their own coverage.
You may also have changed the number of miles you drive per year. While most insurers will not place a heavy weight on the number of miles you drive when pricing your policy, major changes can potentially increase or decrease your premiums.
4. You May Qualify for New Discounts
Recent changes in your life circumstances could potentially yield new discounts. Some of the most common discounts for which drivers can qualify include:
- Good Student Discount: Insurers can offer students who maintain a certain grade point average a small discount.
- Multiple Policy: Bundling multiple policies under one account can reduce the overall cost of the associated premiums.
- Anti-Theft and Safety: If your vehicle has anti-theft or other types of safety features installed, insurers may give you a small discount due to the lower risk of theft or damage to the vehicle.
- Paying the Policy Upfront: Some insurers may allow you to pay the entirety of your policy upfront for the entire period and may give you a discount for doing so.
Your agent can help you maximize the discounts you qualify for and ensure you save as much money as possible on your policy.
5. Your Deductible is Too High or Too Low
Your auto insurance deductible, the amount you are responsible for paying out of pocket before your insurance coverage kicks in after an accident or claim, may exceed what your finances can handle or drive up your premiums by being too low.
Consider the following factors when determining if your current deductible makes sense:
- Affordability: Consider your financial situation, including your savings and monthly budget, and make sure you can comfortably cover the deductible without causing financial strain.
- Risk tolerance: If you have high-risk tolerance and can take on more out-of-pocket expenses in case of an accident or claim, then a higher deductible may be appropriate for you.
- Vehicle value: If your vehicle is older or has a lower market value, it may not be cost-effective to have a low deductible, as the potential payout from an insurance claim may not exceed the premiums you would pay for a lower deductible.
- Driving history: Consider your driving history. If you have a history of accidents or claims, you may want to opt for a lower deductible to minimize your out-of-pocket expenses.
6. You Have New Financial Needs or Major Life Changes
The following life changes or new financial needs can act as a signal that you should consider modifying your existing policy:
- Teen drivers: If you have recently had a child come of driving age, you will need to add them to your policy. Teens tend to have higher driving risk, so this change could increase your premiums.
- Marriages and divorces: Having both spouses on one policy can provide a discount. Conversely, divorces may require both spouses to sign up for different policies.
- New vehicles: If you have recently purchased a new vehicle, you should strongly consider evaluating a new policy.