Don’t assume that following the terms of your car insurance policy is always necessary.
- Buying new auto insurance can result in lower premium rates.
- It may also be necessary to purchase new insurance to maintain proper coverage when the driver’s circumstances change.
- There are six changes after financial expert Dave Ramsey recommends buying new insurance.
Purchasing auto insurance is important to protect against property loss and legal compliance. But even if drivers think that they can buy a service once and not think about it again, it is not so. Instead, it is important to buy things from time to time.
In particular, there are six scenarios where financial expert Dave Ramsey believes motorists should shop around to see if a change in insurance makes sense. This is what they are.
Six things to look for in new auto insurance
Ramsey suggests shopping around and comparing auto insurance for these six conditions:
- After moving
- After buying a new car
- After marriage
- After the divorce
- After adding the young driver to the process
- The loved one who was on the policy has died
There is an important reason why Ramsey says that these life events should trigger an insurance comparison. “Sometimes, big life events affect what you pay – and the company that gave you the best in the past doesn’t anymore,” Ramsey said.
How to sell new insurance
While it may seem daunting to add buying car insurance to your to-do list after a major life change such as a move or divorce, the truth is that it’s easy to research what’s available.
Buyers purchasing a policy can check their current coverage to make sure it is adequate and that no additional coverage is required. “Double-checking your current policy now will help you know what to look for when you start shopping for a new one,” Ramsey explained. “Besides, it’s hard to buy something when you don’t know what you want.”
After looking at the situation, drivers should consider the type of protection they need and whether they should add to their car insurance, such as collision insurance or comprehensive liability insurance. Ramsey recommends having at least $500,000 in loan protection, although the state’s minimum requirements are much lower.
By having information about the types of insurance to buy, consumers can compare quotes from multiple insurance companies online very quickly. It’s easy to do this using the vehicle’s VIN number, as insurers can look up vehicle information when drivers provide this identification number. Drivers who purchase safety equipment must also have details of their own accident history and the driving records of others who will be applying for the policy.
After shopping around for 6 to 10 insurance policies, motorists can decide which company will provide all the coverage they need at the best price.
Some drivers will find this to be a different type of insurance than before when comparing coverage after the major life events Ramsey mentioned, while others may find that sticking with their existing insurance policy makes sense. The only way to determine if a change is needed due to lifestyle changes is to do a comparative shopping process to explore all the options available.
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