As we go about living our lives, insurance seldom crosses our minds. Thatâ€™s why we buy insurance! Yes, it is. However, what we do and how we live our lives impact our insurance. Getting married, have children, moving are a few examples. There will be no alarm. You will not find a note on your calendar. There may not even be no insurance agent calling to inform you of the need to review your insurance.
There are a few events in life where you will get a friendly reminder to review your insurance. The most obvious; when you buy a new car. Some of you may be thinking that buying a new car shouldnâ€™t trigger an insurance review. The only requirement is that you call your agent and ask them to add your new car to your existing policy. Itâ€™s certainly possible that for some, that will suffice. For the rest of us, we are providing an insurance checklist to consider:
- Make sure your new vehicle is added to your policy
- If you traded in a car, you will need to make sure it is removed from your auto insurance policy.
- Your new car may increase your financial exposure if left uncovered. It is important that you review your physical damage coverages, collision and comprehensive. If you didnâ€™t have them on your previous vehicle, you may want to consider it now.
- New Car Replacement Coverage: New cars deprecate red to have comprehensive and collision.
- New Car Replacement Coverage:
New cars depreciate significantly when you drive them off the lot. That depreciation may impact your settlement in the event of a claim. The best way to avoid this is to add a New Car Replacement endorsement added to your auto insurance policy.
- Gap Coverage:
You might find yourself writing a check. If your cars current value is less than the balance on your loan, your insurance may not cover it the difference. You can avoid this nightmare by adding this endorsement.