During the festive season, many of us tend to relax our spending habits and enjoy the holiday festivities. We also begin to think about our New Year’s resolutions. Admittedly, reviewing insurance isn’t usually at the top of that list. However, if you want to start the New Year on solid ground, organizing your finances is essential, and this includes checking your insurance coverage.
Reviewing your insurance doesn’t have to be a long and boring task. In fact, it’s often a quick and easy process that can be incredibly important if you ever need to use your insurance. Here are several key reasons why you should review your insurance coverage.
### Insufficient Coverage
Have there been any changes in your life recently? Maybe you welcomed a new baby, moved into a new home, or acquired some valuable possessions. Significant life changes can greatly impact your insurance needs. Growing your family or moving to a new place generally requires more coverage.
It’s essential to revisit your insurance coverage to make sure it’s adequate for any possible emergencies. For life insurance, ensure that the amount is sufficient to fulfill your intentions if something unfortunate happens. if you’ve expanded your home, confirm that your home insurance includes the new addition.
Taking some time to go through your policies to check what is and isn’t covered is always prudent. You might find that some things you assumed were covered are not, and the last thing you want is to be unprepared for a significant house emergency.
### Excessive Coverage
One of the benefits of reviewing your insurance coverage is discovering that you might have been overpaying. That’s right, you could be spending too much.
Are you still paying for full insurance coverage on an old car? If replacing it is on the horizon, it might not be worth the hefty insurance fee for the current one.
### Look for Discounts
Start the new year by setting reminders to periodically check with your insurance agent for updated quotes so you can always get the best deals. Instead of just renewing your policies automatically year after year, take the time to shop around.
Insurance is like a spare tire in your car. While you hope you never have to use it, you’ll be grateful it’s there if you do need it. That’s why it’s worth spending some time at the end of the year to review your coverage and make sure you’re adequately protected.
How often do you check your insurance coverage?