With rising prices, it’s important to consult with your insurer to see if there are ways to maximize discounts and save money, while ensuring adequate coverage for your personal or business needs. A knowledgeable agent will help you find the balance between affordability and adequate coverage.
Here are five questions to keep in mind when reviewing your insurance coverage:
Am I taking advantage of all available discounts?
Insurance companies offer dozens of discounts, and you’ll likely qualify for at least a few. Review your policy with your insurer to make sure you’re saving as much as possible. You can usually get discounts for:
- Bundling auto and home insurance
- Buying multiple insurance policies (also called multi-policy discounts)
- Membership in groups like AAA or college alumni programs
- Working in a specific position, such as teaching or nursing
- Telecommuting or retirement
- Military service
- Being a senior citizen
- Your vehicle’s safety features, low mileage, or safe driving
Not only does bundling home and auto insurance generally save money, but it also eases the burden of managing different policies with different companies.
Is my policy information up to date?
Many people overpay for their coverage because they haven’t informed their insurer about major changes in their property or life. It’s a good idea to review your coverage annually with your insurer.
Some changes that may affect the cost of your coverage include:
- Moving to a different neighborhood
- Selling a vehicle
- Getting married or divorced
- Teens becoming adults: Make sure they aren’t listed as “teen drivers” on your policy.
Is my house valued correctly?
Many people renovated their homes during the COVID-19 lockdowns, and it’s easy to forget to inform an insurance agent. Renovations change the value of your home, and your policy should reflect these changes.
If you don’t update your insurance with the renovations, there could be a gap in your coverage, leaving you without the resources needed to rebuild in the event of a loss. Also, consider “replacement value insurance” to offset inflation. Rebuilding your home could cost you much more when inflation is high.
Does my coverage include extreme weather conditions?
Our community has recently seen uncommon events, including devastating wildfires and an unprecedented ice storm. Many disasters are covered under a typical homeowners insurance policy; however, there are some exceptions. Check with your carrier to determine what specialty coverages you might need such as flood or earthquake insurance. Ask your carrier how much-enhanced coverage would cost.
Should I increase my deductible?
No. The difference in cost for adjusting your deductible is minimal. On average, savings are about $37 every six months while increasing out-of-pocket expenses in the event of an accident.
Overall, the goal of your insurance coverage is to have comprehensive protection in all areas of your life. Work with your agent to find the best protection at a reasonable price.
