Underground Elephant Lists the Essential Things to Consider During Your Annual Car Insurance Review

Originally published on playbuzz.com

Whether you have resolved to save more money and spend less this year or not, it is a good idea to review your car insurance needs. It is easy to take your car insurance for granted, but failing to review your coverage regularly could cost you thousands of dollars a year in wasted premiums and related expenses.

As you embark on your annual car insurance review, from the type of coverage you need to how much you have to protect, there are many things to consider. Here are the top things to think about as you review your car insurance coverage, detailed by Underground Elephant, a company taking the mystery out of car insurance by offering tips and tricks for lowering your car insurance payment and providing a personal quote comparison tool from the nation's top providers

Is Collision Coverage Still Worth the Cost?

If you are currently paying for collision and comprehensive insurance on your car, ask yourself whether that coverage is still worth the cost. If your vehicle is brand new or just a few years old, the answer is almost certainly yes. Having collision and comprehensive insurance in place will protect you from the significant costs of replacing your car, and give you additional peace of mind.

The decision becomes harder as your car gets older. If your car is a decade old and worth just a few thousand dollars, it may be time to drop the collision and comprehensive parts of your policy. Keep in mind that the most insurance will pay is the value of your car, so spending hundreds of dollars a year for a potential payout of a thousand dollars may not be such a smart tradeoff.

Do You Have Enough Liability Coverage?

The need for collision and comprehensive coverage often goes down with time, but the need for liability insurance tends to move in the other direction. As you get older, move forward in your career and accumulate more assets, you probably have more to protect. The liability portion of your car insurance policy is designed to provide that protection.

If it has been some time since you reviewed your liability coverage, consider reevaluating it. Increasing your liability coverage is usually inexpensive, and the peace of mind it provides will be priceless to you and your family.

Are You Getting All the Discounts You Deserve?

Competition is fierce among car insurance companies, and they work hard to entice new customers and get them to switch vendors. Those marketing efforts include offering discounts for everything from parking your car in the garage to completing a defensive driving course.

“If you have had your policy for some time, you may not be getting all the discounts you deserve,” stated Underground Elephant. Insurance companies change their discounts frequently, and the discounts they offer now may not have been available when you signed up. You owe it to yourself to talk to a representative, or go online and research these money-saving discounts.

Reviewing your car insurance coverage and making sure you are getting the best deal possible only takes a couple of minutes, but it could save you hundreds of dollars a year. Taking the time to review your liability limits, assess the value of collision and comprehensive coverage, and look for additional discounts is a great place to start. If you are a student, consider applying for the Underground Elephant scholarship, which offers $1,000 to a student who is a safe driver and is working to make a difference in their community. By the time you are done, you could have extra money in your pocket, and a lower car insurance bill to show for it.