Over the course of a year, your routine can change a lot without you really noticing. Maybe you started a new job, moved across town, or finally paid off your car. You might even be driving less than you used to. Those shifts are part of life—but they’re also exactly the kinds of changes that can quietly push your auto insurance out of sync with your real-world driving, requiring a review.
Why an Auto Insurance Review Belongs on Your New Year To-Do List
Your auto insurance policy is built around details like where your car is parked, how far you drive, and who’s behind the wheel. When those details change and your policy doesn’t, you could end up overpaying for coverage or risk being underinsured.
You don’t need to be an insurance expert to review your policy, but you do want your coverage to reflect your life as it looks today, not a year or two ago. A new year is a natural checkpoint: look back over the last 12 months and ask, “What’s different now?”
If any of the six situations below sound familiar, that’s your cue to take a closer look at your auto coverage.
1) Your Job or Commute Changed
New office, new job, or new commute? It’s important to let your insurance provider know. Even if you’re doing the same work, the drive to get there may be completely different. Maybe you used to drive 30 miles each way on the freeway and now you work from home.
No matter what the difference is, insurers want to know:
- How many miles you typically drive in a year
- Whether you’re mostly commuting, running errands, or doing business travel
Why does this matter? A person who drives on the highway for multiple hours a day has a higher risk of being in an accident than someone with a 10-minute commute. If you have a new daily drive that looks nothing like it did when you first set up your policy, it’s worth reviewing your policy.
2) You Moved to a New City or State
Moving is one the major reasons to review your auto insurance—especially if you’ve crossed city or state lines.
Where you park your car overnight (known as your “garaging address”) is a key rating factor for your premium. Moving from a quiet suburb to a busy downtown area, or vice versa, can change the risk of theft, vandalism, and collisions. Even moving across town is reason to call your insurance.
Relocating to a new state adds another layer as each state has its own minimum insurance requirements and regulations. A policy that met the rules in your old state may not be enough—or even valid—where you live now.
If you’ve changed ZIP codes in the last year, take a moment to confirm that your policy shows the correct address and garaging location, your liability meets (or exceed) your state’s minimums, and that you understand how any upcoming moves can affect your coverage needs.
3) You Bought, Leased, or Paid Off a Vehicle
Upgrading or paying off a car is a major life milestone—and a good reminder to check that vehicle’s insurance.
Newer or leased vehicles typically call for comprehensive and collision coverage, which comes with specific deductible limits required by your lender or leasing company. However, if you own an aging car, you can decide for yourself if certain physical damage coverage still make sense for your vehicle.
On the flip side, if you’ve gone from an older car to a brand-new one packed with a latest feature, you may want to explore the additional coverage options available. Before making any additional changes, make sure that the right vehicles are listed on your policy and that any policy deductibles are still within your budget.
4) You’re Working from Home and Driving Less
Remote work has turned a lot of “daily drivers” into “weekend drivers.” If your car spends the majority of the time in your driveway instead of the road, your risk profile may have changed.
Although this doesn’t guarantee a lower rate, driving fewer miles is important context for your insurer to have. In some cases, you may be able to switch to a usage-based program that can reward limited or careful driving.
5) You Added a Teen Driver or Another Regular Driver
Few life changes affect an auto policy as must as having a new driver in the household. A teenager with a fresh license is an obvious example, but a partner, roommate, or adult child who regularly uses your car matters too.
Insurers expect to know who has regular access to each vehicle. If a licensed driver lives with you, it’s important that they are on your policy even if they do not own a car themselves. Adding a driver will typically change your premium, especially if it’s a young driver, but it can also unlock new discount opportunities such as a good student discount.
It’s also a good time to ask yourself if your liability limits are sufficient now that more people are behind the wheel. If you have a new face driving your car this year, double-check that they’re listed properly and that your coverage reflects any addtional risk.
6) You Started Using Your Car for a Side Business
Food delivery apps, ride-sharing, mobile services have made it easier to earn money with your car, but they’re also making it easier to accidentally step outside what a standard auto policy covers.
Many personal policies limit or exclude coverage when you use a vehicle for commercial purposes. This can include delivering goods transporting passengers for a fee, or using your car extensively for business purposes.
If you’ve started driving for a ride-share or delivery service, be clear with your insurance company about how and when you’re using your car. In some situations, you may need to purchase additional coverage or add a commercial policy to avoid unpleasant surprises if there’s an accident down the road.
AIS is Here to Help
Your life doesn’t stay the same from year-to-year, and your insurance shouldn’t either. The New Year is an easy way to review that the auto insurance you’re paying for still matches how you actually live and drive.
If you recognize yourself in any of these six scenarios, then it’s a good time for a quick auto insurance review. A few small adjustments can really change how much you pay for coverage. At AIS, we’re experts in finding ways to help you save. We’ll compare quotes from our network of providers to find you the best rate available. Give us a call today at (888) 772-4247 or start a quote online to get started.
The information in this article is obtained from various sources and offered for educational purposes only. Furthermore, it should not replace the advice of a qualified professional. The definitions, terms, and coverage in a given policy may be different than those suggested here. No warranty or appropriateness for a specific purpose is expressed or implied.
