During the festive season, many of us tend to spend more and indulge a bit more than usual. We enjoy the holiday cheer and start thinking about our New Year’s resolutions. Reviewing insurance may not be at the top of your list, but if you want to start the new year on a stable note, sorting out your finances, including insurance, is crucial.
Checking your insurance coverage doesn’t have to be a long, boring task. It’s usually quick and simple, and it can make a huge difference if you ever need to use your insurance. Here are a few key reasons why it’s worth reviewing your insurance coverage.
NOT ENOUGH COVERAGE
Have you experienced any major life changes recently? Maybe you’ve had a baby, bought a new house, or acquired some valuable items? Significant life events often mean you need more insurance coverage. Growing your family or moving into a new home usually calls for an update in your insurance.
Even though it’s not the most pleasant thought, having enough insurance is essential for emergencies. For life insurance, make sure that the payout would cover your needs if something unfortunate happens. If you’ve expanded your home, double-check that your home insurance includes the new addition.
It’s always wise to go through your policies and confirm what’s covered and what’s not. You might find out that some things you thought were covered actually aren’t, and the last thing you want is to be caught without enough funds during a major home emergency.
TOO MUCH COVERAGE
On the flip side, you might find out that you’re overpaying for insurance. Yes, really. Do you still have full coverage on that old car? If you’re planning to replace it soon, paying a high insurance fee for it might not be necessary.
FIND DISCOUNTS
Start the new year right by setting reminders to check in with your insurance agent throughout the year for updated quotes. This way, you make sure you’re getting the best deals available.
Don’t just automatically renew your policies each year without looking around. Comparing different options can save you money.
Think of insurance like a spare tire in your car. You hope you never need it, but if you do, you’ll be glad it’s there. That’s why it’s worth spending a bit of time at the end of the year to review your coverage and make sure you’re properly protected.
How often do you check your insurance coverage?