Car insurance keeps your car safe against financial and legal damages. You could be in legal trouble if your vehicle needs to be insured. In case you meet with an accident, and you’re at fault, you will have to cover the injured party’s medical bills, among other damages.
Such issues are avoided when you find the right insurer based on your needs and budget. If you are looking for inexpensive options, you can choose affordable car insurance in Illinois. When you get your car insured, you can generally stop thinking about car insurance.
You have done the hard part, and now you can drive freely without worrying about mishaps. However, there are multiple situations in which you should update and review your car insurance policy in Illinois. These are discussed below:
You’ve Changed Your Address
On the surface, this might seem stupid. How will the change of my address affect my car insurance policy? It’s essential for multiple reasons. Here’s why-
Crime Rates Of Your Neighborhood
Moving from a high-crime neighborhood to a low-crime community, you’ll have to pay a lesser premium for obvious reasons. On the other hand, if you are moving to a higher crime neighborhood, the risk of damage to the car is more elevated. Therefore, higher premiums
Parking
Your situation will also decide if the amount of your premium will change. For example- Let’s say you’re moving to a location where you’ll now have open parking. Naturally, this increases the chances of damage to your vehicle. As a consequence, the premium amount will rise.
Population Density
Let’s say you’re moving from a rural area to a big city like Chicago. The premium will increase as there will be more traffic in Chicago, and thus more chances of accidents. Conversely, the premium will reduce if you’re moving to a rural area.
What can also affect the premium amount is the change in ZIP code. The reason is that many insurance companies use ZIP codes, among other factors, to estimate the risk of car damage.
Some companies only provide coverage in some states. Therefore, you should talk with your insurer if you are moving from one state to another. Consequently, you might need a new insurance policy.
For example- Let’s say you’re moving from Texas to Illinois. PIP coverage is mandatory in Texas but not in Illinois. Your premium amount will likely change.
You Got Married or Divorced
Getting married or divorced can affect several things. Car insurance is one of them. Married couples file fewer claims and are thus considered better drivers.
When you get married, your premium amount will reduce. You may even qualify for a discount in some cases. Conversely, if your spouse has a terrible driving record, you will likely be adversely affected.
Things are much trickier in cases of divorce, though. The first step will be to decide who is getting which car and where the vehicles will be kept. In matters of ownership and residence changes, you and your spouse will have to get separate policies.
We recommend speaking to your insurer before getting any new policy.
Your Teen Kid Starts Driving
Another situation where you should update and review your car insurance policy is when your teen kid starts driving. Young drivers are more likely to get into accidents. Thus, your premium will surely increase when you add your teen kid to your insurance policy.
The other alternative is to get them their insurance policy, but the premium will be expensive. Therefore, most families prefer to add their teen kids to their policy than to get them their own.
Although adding your kid to your insurance policy is pretty expensive, hiding them from your insurer is even more fatal. For instance, let’s say your teen kid gets into an accident. If your insurer doesn’t know your kid has started driving, let them know once he gets his learner’s permit. The company can deny your claim saying they weren’t aware you had a teen driver.
Conclusion
Getting car insurance means you should only worry about it once the policy expiry date is near. However, there are some cases in which you should update and review your car insurance policy even before the expiry date. Change of address is one such occasion. While this could mean you’ll have to pay more. It’s always better to be insured.
