You should review your auto insurance policy every year because market conditions, personal circumstances, and insurance offerings change frequently, which can significantly impact both your coverage needs and what you pay:

• Rates and Coverage Change Annually: Auto insurance premiums are not static. In 2025, while rate increases are slowing (averaging 7.5% after much steeper hikes in previous years), the average cost of insurance still reaches record highs, and pricing can vary widely between insurers and states215. Reviewing your policy ensures you’re not overpaying and helps you catch any rate increases or new surcharges that may have been added23.

• Life Changes Affect Your Needs: Major life events—such as buying a new car, moving, adding or removing drivers, or changes in your commute—can affect your risk profile and coverage requirements. Annual reviews help ensure your policy matches your current situation and that you’re not paying for unnecessary coverage or missing essential protection4.

• New Discounts and Policy Options: Insurers frequently update their discount programs and coverage options. Reviewing your policy can help you spot new opportunities to save, such as bundling home and auto, usage-based insurance, or loyalty and safe driving discounts4.

• Claims Trends and Risk Factors Evolve: Accident rates, repair costs, and even severe weather events are all on the rise in some regions, which can affect premiums and coverage needs. For example, the transition to electric vehicles and increased accident frequency are shifting risk profiles and claims severity, which may require you to adjust your coverage or shop for better rates13.

• State Laws and Minimums Change: Some states are increasing minimum coverage requirements in 2025, meaning your current policy may no longer meet legal standards. An annual review ensures compliance and adequate financial protection5.

• Avoid Coverage Gaps and Overlaps: Reviewing all your insurance policies together (auto, home, renters, etc.) can help you identify gaps or overlaps, ensuring you’re fully protected without paying for redundant coverage4.

• Consumer Shopping Is at an All-Time High: In 2024, more than 45% of policies were shopped at least once, and older, long-tenured policyholders are increasingly switching insurers to save money. Regular reviews put you in the best position to take advantage of better rates or coverage elsewhere1.

In summary, an annual review helps you adapt to rising costs, changing risks, and evolving personal needs—ensuring you have the right coverage at the best possible price