How Often Should I Update My Auto Insurance Policy?
Auto insurance covers the vehicle so anytime you buy or sell a vehicle your policy must be updated. Newly-purchased vehicles won’t be covered automatically. And vehicles that you sell are not automatically removed from your policy. You have to notify your insurer of the necessary changes, before you drive that new car for the first time, and soon after you transfer your vehicle’s title to a new owner.
New Driver
Your teen-aged driver needs to be added to your policy. Since the process isn’t automatic, that addition can’t happen until you notify the insurer. It’s a good idea to do this as soon as your teen-ager gets his/her driver’s license.
Newly Married or Newly Divorced
Adding and deleting spouses and ex-spouses will only happen when you notify the insurer of the required policy change. Once you’re married and your spouse moves in, it’s a good time to add your spouse onto your policy. Better yet, take advantage of available discounts by combining you and your new spouse onto a single policy. Remove a spouse once you divorce and your spouse moves out by contacting the insurer. This should also be done when a spouse dies.
Change of address
Let your insurer know of your new address and move-in date as soon as possible. You may see a rate change since geographic location is one of the factors that helps determine your rates.
When your vehicle’s paid off
As a condition of loan approval, your lender probably required you to carry certain coverage and coverage amounts. Now that you own your vehicle free and clear, you can decide the coverage that makes the most sense.