A car insurance policy can be a huge source of comfort to a motorist. However, a policy might not be as all encompassing and protective as many drivers think; regular updates are necessary when major life events take place to keep a car insurance policy valid and adequate. Some motorists neglect to update their car insurance plans until it's too late, and as a result, coverage lapses. This is extremely bad news if the driver should get into an accident. Because of the hefty consequences of lapsed coverage, it's very important to know the circumstances that require you to update your car insurance policy.
The most common reason to update your car insurance is when there are any changes are made that necessitate an addition of a new driver. For example, when a teen begins driving, he or she absolutely needs to be added to your car insurance policy for your coverage to extend to them. Many parents neglect to add teen drivers, assuming that they're automatically covered. Unfortunately, this very risky move can lead to the loss of the teen's license for driving without insurance, or worse, an auto accident where you're not covered for any of the damages. On the same token, you'll want to remove the teen driver if he or she moves out of your house, as otherwise you'll be paying unnecessarily high premiums for their part of the policy that isn't being used.
It's also important to notify your car insurance company when you get married. Combining your policy with your new spouse's policy is a great way to get some huge insurance savings, which most newlyweds need when figuring out new budgets. Likewise, you should notify your insurance company if you get divorced and you're not living in the same house or apartment as your former spouse. Any time that there's any sort of change in your living situation, it's a good time to notify your insurance company and update your policy. Whether you've had new people move into your house, people have moved out or you've actually moved to a new home, tell your car insurance company. Major changes will be reflected on your car insurance bill. This is especially true if you move to an area with more or less crime than your current neighborhood. Your car insurance rate will likely change, as your location is one of the big determinants used by car insurance companies.
Be careful not to take your car insurance policy for granted. Update it regularly, especially if there are any changes to your household. This is the best way to keep your coverage accurate and your rates as low as possible.