A Trusted Choice® survey showed that more than 4 of 10 families did not update their auto insurance policy when they had a young driver move away from the home. Additionally, 85% of policyholders didn’t change their liability insurance coverage to cover increase risk of additional passengers for carpools and carrying schoolmates to school.

Update Your Auto Insurance Policy When You Get a New Home

If you make more than $75,000 a year, and own a home, insurance companies recommend you update your policy to a least $100,000/$300,000 of Bodily Injury coverage and $100,000 total of Property Damage Liability coverage. Since you probably had your auto insurance policy set before you have purchased your new property, this is the time to reflect those changes in your policy.

While most states require a bare minimum of coverage, you may want to consider increasing your coverage to cover your assets. Most insurance companies suggest to review your policy thoroughly at least every year or two.

The 5 Sections of An Auto Insurance Policy

Auto insurance is mandated by nearly every state. Here is a list of titles, and sections that may differ from one insurance company to the next, all include the same information.

Auto Insurance Policy Declarations

This section of the policy covers your personal information, such as your name, address, type of vehicle you own, vehicle identification number (VIN number), policy number and expiration. Some cover the type of insurance policy covered along with deductibles, and policy limits. Always check to ensure accurate information.

Auto Insurance Policy Coverage Parts/Insuring Agreement

This section lists your liability, medical, collision, and comprehensive options and coverage limits. It also outlines the parameters set for the insurance company coverages.

Auto Insurance Policy Exclusions

This section should be read carefully. It explains in detail the exclusions that are not covered in your policy. You need to pay attention to this page, and make corrections when necessary.

Auto Insurance Policy Conditions

This section outlines the payments, how to file a claim, steps to resolve disagreements and other legal responsibilities.

Auto Insurance Policy Definitions

This section has all of the “fine print.” It outlines the rights of the insurance company and policy holder.

Auto Insurance Policy Collision Coverage

This policy outlines coverage for an accident. This coverage will pay to repair your vehicle, and covers the loss of your own vehicle caused by another vehicle or object. Choose your deductible to determine the amount of your premium costs. (Remember: the higher the deductible, the lower your monthly payments.) his is a tricky balancing act, because you generally have to pay your deductible upfront to have your damaged car repaired.

Auto Policy Comprehensive Coverage

This portion of your policy covers fires, theft, vandalism, falling objects and other non-collision damage.

Auto Insurance Policy Liability

Liability insurance covers damage caused by an accident. These costs also cover legal fees as well. While you have bodily injury coverage to pay for medical costs, liability pays for replacement and repairs of other property.