When Was the Last Time You Checked Your Car Insurance? 8 Things to Look For
Your car insurance needs may have changed over the past year. A quick policy checkup could uncover savings, eliminate unnecessary expenses and help you avoid costly coverage gaps.
When your car insurance premium comes due, do you simply pay it without giving your coverage much thought? If so, you're not alone. Most drivers just pay their premiums unless it's time to file a claim or their rates increase. That could be an expensive mistake, since a simple car insurance review might help you save money on your policy.
A lot can change in a year. You might drive less, have paid off your vehicle or qualify for discounts that you weren't eligible for previously. You might be overpaying for insurance, and if you simply renew your policy, you could continue overpaying for months or years.
Before your next payment, take time for a car insurance review and consider these questions to make sure your current policy still works for you.
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1. Are you paying for coverage you no longer need?
Though nearly all states require drivers to carry liability coverage, collision and comprehensive coverage are optional. Collision insurance helps repair or replace your vehicle if it's damaged in an accident, and comprehensive coverage helps repair or replace your vehicle if a non-collision event, like weather or vandalism, damages it.
If your vehicle is older and has depreciated, it may no longer make sense to buy collision and comprehensive coverage. On the other hand, these coverages may be worth the extra expense if you have a newer or more expensive vehicle that would be costly to replace.
If you have a car loan or lease, review the terms before changing your insurance. Lenders and leasing companies may require you to maintain a certain amount of collision and comprehensive insurance on your vehicle until it's paid off or your lease ends.
2. Do you have enough liability coverage?
States require drivers to carry a minimum amount of liability coverage, but those minimums may not protect your finances after a serious accident. If you're at fault for a serious accident and the damages exceed your liability policy limits, you're responsible for the difference.
As vehicle repair and healthcare costs continue to rise, damages from a serious accident could quickly exceed your policy limits. If you're sued and found liable for damages beyond your coverage, your savings, certain investments, home equity and even future wages could be at risk, depending on state laws and applicable protections.
According to the National Safety Council, the calculable cost of motor vehicle crashes resulting in evident injury averaged $45,000 in 2024. Crashes that caused disabling injuries cost an average of $174,000, while crashes resulting in a death averaged $2,050,000.
Most states require bodily injury liability minimums of about $15,000 to $50,000 per person and property damage liability minimums of $5,000 to more than $25,000, but those limits can fall short in an accident.
As your income and assets change and you have more to lose in a lawsuit, it's a good idea to revisit your coverage limits and consider increasing your liability coverage. An umbrella insurance policy can extend your personal liability protection and may be a good idea if your total assets exceed your liability policy limits.
3. Could adjusting your deductible save money?
Your deductible and premiums are closely connected. If you increase your deductible, your premiums decrease, and vice versa. If you want to save on your car insurance, increasing your deductible is one potential way to do that.
Keep in mind that if you need to file a claim, you'll need to pay that higher deductible out of pocket. Before you set your deductible, consider what amount you'd be comfortable paying on short notice.
It's a good idea to keep that full amount in savings, such as in a high-yield savings account, so it's accessible if you need it. Use the tool below to compare some of today's top savings account offers:
4. Have your driving habits changed?
Changes in your driving habits and vehicle use may mean you can save by adjusting your car insurance. For example, consider whether you're working from home, retired or commuting fewer miles than before.
Verify your estimated annual mileage and vehicle usage with your insurer to see if you qualify for a discount, or if changing policies makes sense.
Many insurers offer low-mileage discounts to help you save. Some insurers also offer usage-based programs, such as pay-per-mile programs, that track your mileage and bill you accordingly. These programs may become expensive if your mileage increases, and they're generally recommended for drivers who drive less than 10,000 miles per year.
Many of these programs use an app or a device you install in your vehicle to track your miles, which may involve a privacy trade-off.
5. Is everyone on your policy still supposed to be there?
Before your policy renews, review all listed drivers, vehicles and addresses to ensure they're correct. Common changes, like a child leaving home, a new driver starting to drive your vehicle or a move, may mean you need to update your policy information.
Keeping your policy information accurate matters, and it affects not only your billing but also your coverage if you need to file a claim.
For example, if a new driver has an accident while driving your car and your insurance didn't cover them, your insurer might deny or limit your claim. Failing to report all children in your household may affect your coverage after a claim. Report any changes right away, but double-check your policy before it renews to catch anything you might have missed.
6. Are you missing out on discounts?
Most insurers offer numerous discounts that can further lower your premiums. Some of the most common include:
- Bundling: Bundling multiple policies, like home and auto, with the same insurer can sometimes earn you a discount
- Defensive driving courses: Many insurers offer a discount if you complete a defensive driving course. Be sure to confirm whether the specific course you’re considering will qualify for the discount before enrolling.
- Vehicle safety features: Since features like car alarms, anti-lock brakes, and blind-spot detection may help prevent accidents and theft, insurers often offer discounts if your vehicle has them.
- Good student: If you have a high school or college student on your policy, they may qualify for a discount by maintaining a higher GPA. Insurers often limit this discount to full-time students under a certain age.
- Automatic payments: You may get a discount for signing up for automatic payments. Just keep in mind that if you've signed up for automatic payments, it's extra important to stay up to date with your policy changes and renewal date.
Contact your insurer and ask for a complete discount review; you may be eligible for discounts that you weren't aware of. Eligibility and savings vary by insurer and state, so get the details from your insurance provider.
7. Have you experienced a life event this year?
Life events, like moving or getting a new job, may impact your auto insurance needs. If you've experienced any of these events this year, you may want to review these elements of your policy.
If this happened this year |
Review this |
You started working from home |
Annual mileage and low-mileage discounts |
You paid off your car |
Collision and comprehensive coverage |
Your teenager started driving |
Listed drivers and student discounts |
You moved |
Garaging address and policy pricing |
Your car lost significant value |
Whether optional coverage still makes financial sense |
Your finances improved |
Liability limits and deductibles |
8. Have you compared car insurance quotes lately?
Comparing car insurance quotes at least once a year may help you to save. According to Consumer Reports’ 2024 auto insurance survey, drivers who switched insurers saved a median of $461 per year.
To get the best deal on the coverage you need, compare quotes from at least three insurers before you renew your policy. Compare identical coverage limits, deductibles and policy features so you can see how the policies truly stack up.
It may be tempting to choose the cheapest policy to save money, but that doesn't always offer the best value. Instead, consider factors like the company's reputation for paying claims and the customer service options available to get the coverage that's right for you and your needs.
Use the tool below to compare some of today's top auto insurance offers:
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