Going through significant changes in life is an exhilarating experience. However, during such transitions, one may forget about the importance of insurance. It is crucial to ensure that you have the right coverage to protect yourself, your family, and your investments. Here are five life milestones that require you to reevaluate your insurance policies.
1. Buying a New Car or Motorcycle
Congratulations on buying a new vehicle! However, before you hit the road, it is essential to ensure that your vehicle is insured correctly. You may transfer your existing coverage or add the new car to your policy as an additional vehicle if you already have insurance.
Typically, your new vehicle will be covered under your existing policy for a limited period, ranging from 7-30 days. So, it's necessary to contact your carrier or agent as soon as possible to get your new vehicle covered officially. Regardless of your existing insurance status, you will need to meet your state's minimum coverage requirements to prove your financial responsibility in case of an accident. It's worth noting that liability-only insurance does not cover any injuries or damages to your vehicle.
Moreover, with a new vehicle, you might need additional protection, such as collision and comprehensive insurance, to safeguard your investment. Collision coverage pays to repair or replace your vehicle after a covered accident, no matter who is at fault. Comprehensive coverage, also known as “other than collision coverage,” pays to repair or replace your vehicle after a covered non-accident event. These events may include theft, vandalism, natural disasters, contact with an animal, or anything else stated in your policy.
If you have taken a loan to purchase your new car, your lender may require you to carry these coverages as they have a financial interest in the car until you pay them back.