How To Review Your Car Insurance Policy In 2020 - Best Guide

Hi guys and welcome your car insurance is extremely important to your overall safety after all if you're in an accident. 

You're going to rely on that insurance which means you need to know what's covered on your insurance and what isn't you also need to know if your insurance company changes anything so how do you make sure that you're getting exactly what you would expect on your insurance. 

How To Review Your Car Insurance Policy

You could talk with your insurance agent or you could sit down with your insurance documents entirely on your own now remember that you're trying to make sure you're getting the coverage that you need that means you're going to have to read everything you need to examine all of your documents carefully and you need to know what you're looking at otherwise you could end up with trouble down the line on this article. 

We are going to review the most important aspects in your car insurance how to read them and what are the exceptions let's start one declaration page this is where you're going to get a general overview of what your car insurance covers it's the place that you want to start when you evaluate your insurance coverage that way you have a general idea of what you're looking at you'll usually find things like vehicles and individuals who have covered the types of coverage limits and deductibles on each and even how long the policies for you'll also find different discounts and surcharges for your account. 

So you know what you're paying to make sure you look at who is covered and whether all of them need to be on your insurance you also want to make sure you're covering everyone you thought you were two mandatory coverage your state will have specific minimums for what you need to have in your coverage make sure that you know what those minimums are and that your coverage fits those.

Requirements bodily injury in most states you will have a specific minimum you need for this coverage it's what takes care of any injury to the other party if you are at fault for the accident medical expenses lost wages to pain and suffering and even a lawsuit against you will be covered under this part of your insurance you're generally going to see two different numbers listed where the first number is a maximum paid per person injured in one accident and the second is the maximum paid per accident any amount needed over that amount is up to you to pay property damage this is another important piece in most states. 

If you are at fault for an accident your insurance will pay for any damage to the other person's property whether that's a vehicle or some other object this is usually put in with the bodily injury coverage and comes up as a third number on the list that's the maximum your insurance will pay after that you're on your own to cover the cost these are things that you absolutely have to have but only to specific levels once you've surpassed the state's minimum it's up to you if you want more coverage you should make sure that you have at least that state minimum however three optional additions. 

Car Insurance Policy In 2020

These are the things that your state doesn't require but you might have anyway things like uninsured or underinsured motors coverage or collision insurance will fall into this section collision this is the part of your insurance that covers your vehicle if you get into an accident whether you hit another vehicle or an object your collision insurance will take care of it up to your maximum if you have this kind of insurance this doesn't do anything about medical coverage or any kind of damage not caused by a driving accident. 

It may also be required if you have a lease or a loan on your vehicle comprehensive this type of insurance takes care of non-accident related damage if your vehicle is damaged by fire flood hail or anything else that's not related to an accident this coverage takes care of it you will not have to worry about the damage up to your current maximum and not counting your deductible uninsured slash underinsured motorist now if you get into an accident with someone and it is not your fault the other insurance company is responsible. 

If the other driver doesn't have insurance or doesn't have enough insurance that's where this comes in this will cover any additional costs and fees up to your maximum so if you have more damage than their insurance will cover this is the insurance you'll use to take care of the expenses other there are other types of insurance that you can also look into and add to your policy these are things like towing property protection lease coverage and more in many cases these may be more expensive than they're actually worth but you also want to make sure that you consider them carefully look at what they cost and what you'll get out of it. 

4 exclusions these are things that are specifically listed as not being covered by your insurance you'll generally have a section that refers to this make sure you fully understand your exclusions damage to your property damages from business use of your vehicle damages from livery use of your vehicle intentional damage to someone else's vehicle damaged by certain specified events five discounts slash offers. 

You may actually be eligible for different discounts on your policy if you meet certain requirements these could vary from highly exclusive to broad categories and could give differing discounts some may give minor discounts and some may be higher-good grades drivers training courses multi-vehicle multi-policy online-only clean driving record college slash occupation slash membership advanced payment if you qualify for any of these discounts make sure you let your agent know ask them about any other discounts that may be offered six medical coverage. 

If you're injured in an accident medical coverage can cover your expenses related to any kind of injury this doesn't have to be injury from an accident where you are driving it can actually be injuries from being a passenger in another vehicle as well. 

So if you are in a vehicle that is in an accident your medical expenses would be covered it doesn't matter if it's one of your vehicles or if you're driving improve your policy conditions things to consider once you know all of these things about your policy you'll be able to start looking at options you can plan out ways to improve your policy and make sure that you have the right coverage this might mean changing the minimums the deductibles adding coverage and more deductible you have the ability to set different deductibles for different aspects of your policy you may also be able to choose the maximum of these aspects you want to make sure. 

You know what the amounts are and how it affects your premiums raising your deductible or lowering the maximum may lower your premium value if your vehicle is starting to get older or already has some damage you may want to reconsider the type of coverage that you have you may want to look at different types of coverage that aren't as expensive that's because your vehicle isn't going to be worth as much to fix or it might not even be worth what you're paying for the extra coverage risk level is your vehicle at high risk of being damaged if it is then you may want more coverage. 

If it's not then you may want to lower the amount of coverage that you have if you're a very safe driver you may not need the highest level of coverage if you've been in several accidents before you may want to look into better coverage credit score Your credit score affects a number of different things in your life your car insurance can be one of them if you show a high credit score you may be able to reduce your premium this shows the car insurance company. 

Conclusion

You're a safer person and that you're less of a risk overall that's it for now on our website you can find more posts and podcasts, as well as calculators and other financial tools, do you have any questions we would love to know your thoughts.