Consider these tips when shopping for auto insurance coverage

I have talked about auto insurance and what causes rates to go up, but why don’t consumers shop more often for auto insurance, and what are the points when most people look around for a different insurance company?

First of all, many people are not versed enough in the language of insurance and feel uncomfortable about calling an agent to check on competitive rates for their exposure. This results in many people paying too much for coverage, or not changing coverage or coverage limits as their vehicles age or the drivers change.

A case in point is the addition of a young driver to a policy. This change significantly increases the policy premium. Some of this cost can be offset by increasing deductibles on comprehensive and collision coverage. I would not, however, lower the liability limits. You might want to consider increasing them depending on the driving habits of the new driver.

As your vehicle ages, you need to consider whether it’s worth it to continue physical damage coverage on your vehicles. That, of course, depends on the car, mileage and value. You have to weigh the cost of the insurance versus the cost of the vehicle. Even if you keep your car in primo condition, you may not get reimbursed the value that you think it is worth if it is stolen or totaled in an accident.

Since property damage coverage is required in Georgia, you may only need to use collision coverage if you are at fault in an accident. It is your choice what coverage to carry based on your driving habits and pocketbook.

The one time you do not want to switch companies is when you have had a series of accidents or violations and your current company is surcharging your policy. You become very difficult to place as a new risk to a new company, and you probably need to just bite the bullet and pay the increased amount.

You do not need the fact that companies have turned you down for insurance due to your driving record. That question will be asked on most future applications.

There are several other tidbits to consider. Don’t let your insurance lapse. Insurance companies share data bases and know if you are currently uninsured. You are not fooling anybody but yourself. If you do not have current coverage, your price goes up.

Also, as I have mentioned before, as you age you need to get with a company that you are comfortable with into the future. Once you reach the age of 70, you are very difficult to place, even if you have an unblemished record.

Put your trust with one company or agent and insure your home and auto together.

This story was originally published July 12, 2016 at 6:05 PM with the headline "Consider these tips when shopping for auto insurance coverage."