Insurance
The Right Car Insurance Coverage At Every Stage Of Life
Here’s an article for our US readers, but it does translate very well to car insurance in the UK.
Buy it, and forget it. That’s how millions of consumers think about their auto insurance. They realize certain coverages, such as Accident Benefits and third-party liability, are mandated in nearly every province and territory (Newfoundland and Labrador are the exceptions).
They must be purchased in order to drive legally. Other coverages are optional, but potentially valuable depending on your circumstances. Examples include collision and comprehensive coverages.
But how many people carefully review their insurance policies and coverage limits as they reach different stages of their lives? Not many, even though doing so can save money and prevent headaches down the road. With this in mind, we’ll take a closer look at car insurance in the context of significant life events below.
Updating Your Coverage Limits After Buying A Home
A new home is a valuable asset. This means it may become subject to court judgment in the event you cause an accident that results in substantial property damage or injuries. Normally, your third-party liability coverage would pay for such claims. But if your new home is worth more than your liability limit, you could be exposed to a potential loss.
For example, suppose you live in a $300,000 house in Alberta, and have purchased the minimum third-party liability coverage ($200,000 for a single incident). Further suppose you cause a collision that results in medical bills costing $250,000. If you are unable to pay the $50,000 above your coverage limit, your house may become subject to the claim.
When buying a house, reassess your liability limit. Raise it to accommodate your home’s value.
Starting A Family? Review Your Auto Insurance
Getting married and having children should prompt you to reevaluate your coverages, and look for ways to lower your rates. First, many insurers consider married drivers to represent a lower risk of insurance loss than single drivers. Hence, they may be willing to lower your premiums. Many also provide discounts for combining multiple policies under one company, or multiple policyholders (e.g. spouses) under one policy. Every discount poses additional savings.
A second reason to review your policy is because your family may depend upon you. The home in which your family lives, as well as other assets, may play a key role in their long-term financial comfort and survival. Make sure these assets are not at risk of a liability claim.
When Your Kids Become Teen Drivers
If your children are nearing the age at which they can earn their learner’s permits, start planning to insure them. Keep in mind, with a learner’s permit, they may not be required to have their own insurance coverage. As long as an insured and licensed driver is with them in the vehicle, your insurer may be willing to let them operate the car without their own policies. (Verify this with your insurer, of course.) When your kids are ready to drive on their own, however, they’ll need coverage.
Have your teenagers complete a driver training course to help lower their rates. Also, take the opportunity to comparison shop between other insurers. You may find that, with your teen added to your policy, your current insurance company is no longer the one with the lowest rates.
Factors To Consider When Approaching Retirement
Retirement promises more vacations, time spent lounging at home (or on the golf course), and less commuting back and forth to the office. A lot of retirees drive far fewer miles than they did while working at their jobs. This is one of the reasons many insurers extend a discount to policyholders who have retired. Check with your insurer to see whether they offer such a discount, and how to become eligible for it.
Also, many people downsize when they reach retirement age. For example, if they own three cars, they might sell one or two of them. If they own two vehicles, they might downsize to one. If you plan to sell your cars, make sure they are removed from your policy. This alone should help reduce your premiums.
Your auto insurance needs will shift as you enter various stages of your life. At each stage, review your coverages and limits. Then, shop around to make sure you’re enjoying the lowest rates possible.
If you are considering reducing the amount you pay on insurance for your vehicle, you should consider comparing quotes online at Kanetix Assurance. Kanetix offers a free comparison service where you can compare the quotes offered by multiple insurance companies for Quebec city assurance auto from just filling out a single quote.
