Why You Should Regularly Evaluate Your Insurance Coverage

by Miranda Marquit · 0 comments

Insurance is one of those things that most of us recognize that we need, but that we don’t think too much about once we have it. You get your coverage, and go on your way. However, that’s not always the best approach if you want what’s best for your pocketbook. You need to keep evaluating your insurance coverage if you want to continue receiving the best possible outcome. Here’s why:

Save Money

The first reason to evaluate your insurance coverage on a regular basis is so that you can save money. You might be surprised to find that you can pay less if you shop around more. Start with your current insurer. Ask about discounts and programs, and for an evaluation. Then, compare prices with other insurers. You can then go back to your insurer if you find a better deal elsewhere and see if your current company will match the lower price. If not, make the switch.

In some cases, you can also save by changing your coverage or your deductible. With auto insurance, you may no longer need collision coverage on your vehicle. Perhaps you can increase your deductible. If you had a $500 deductible on your homeowners or auto insurance, boost it to $1,500, and save on premiums. With health insurance, a high-deductible plan can save you hundreds of dollars a month. Of course, raising the deductible only works if you have an emergency fund that can handle it. Don’t raise your deductible unless you can pay out of pocket to cover these costs.

Make it a point to regularly evaluate your coverage, and you could save money every month.

Get the Right Coverage

Over time, our needs change. Some homeowners discover that the limit on the replacement of their homes doesn’t cover upgrades to their homes, or to appreciation. That means if something happens, you don’t have the insurance to take care of it. Others continue to pay for coverage they don’t need. You want to make sure that your assets are properly covered, and that you aren’t paying for “extra” coverage. Evaluating your coverage regularly means that you can improve the effectiveness of your policies. And don’t forget to change your life insurance as your income rises and your family grows.

You should also consider whether or not you need additional policies. Use this regular evaluation as a way to determine whether you need to add something. If you have seen an increase in income, and your current liability coverage is insufficient, consider an umbrella policy. If you are worried about being injured on the job, disability coverage might make sense. While you don’t want to waste money on unneeded policies, it is important that you get the policies that you need so that you are properly protected.

Don’t get caught with the wrong insurance policy — and don’t pay too much. Make it a point to review your coverage every year, and then update your policies as needed. That way, you can save money when you can, and ensure that your finances are protected.

Bonus Tip:

Another way to save on your monthly Internet and TV costs is to find a current ATT U-Verse coupon code or at least a promotion to knock down your home service bill.

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