Why You Should Review Your Auto Insurance Every Year

Your car insurance policy renews every 6 or 12 months, and most people just let it auto-renew without a second thought. That convenience is costing American drivers an estimated $21 billion in overpayments every year.

Insurance Rates Are Always Changing

Insurance companies adjust their rates constantly. A carrier that was the cheapest option for your profile 12 months ago might now be 20-30% more expensive than a competitor. The only way to know is to check.

Your Life Changes — Your Insurance Should Too

Think about what's changed in the past year: Did you move? Did your commute change? Did you get married or divorced? Did you turn 25, 30, or 65? Did your credit score change? Did you pay off your car loan? Did a ticket or accident fall off your record?

Any of these changes could mean you qualify for a lower rate — but your insurer won't proactively tell you.

What to Check During Your Review

Coverage levels: If your car has depreciated significantly, you might want to adjust comprehensive and collision coverage or raise your deductible.

Deductibles: Raising from $250 to $1,000 can reduce your premium by 15-25%.

Discounts you're missing: Multi-policy bundling, good driver, low mileage, safety features, autopay, defensive driving course, and professional organization discounts.

Unnecessary add-ons: Rental car reimbursement and roadside assistance might overlap with credit card or AAA benefits.

The 15-Minute Check That Saves Hundreds

Pull out your current policy. List any life changes from the past year. Get 3-5 comparison quotes. Compare total annual cost. If you find a better deal, call your current insurer first — they may match it.