“Set It and Forget It” Doesn’t Work for Insurance
Many people avoid fiddling with their insurance policies — unless they are tempted to save money. Shopping for insurance isn’t all about saving, however. Major life events and evolving insurance needs may be good reasons to talk with your insurance agent about your coverage.
When you review your policies, make sure you ask your agent to explain the recommended coverage. Ask questions about premium versus coverage, opportunities for savings and discounts, and new bundling options. Here are three reasons to review your insurance.
1. Risk Analysis
The nonprofit Insurance Information Institute advises consumers to review their insurance policies at least once a year or after a major life change, such as change in marital status, having a child, or buying or selling a home. You must ensure that you have the right coverage and policies for your evolving insurance needs.
2. Bundles
Have you bought a home, motorcycle or boat? You might want to consider bundling your insurance policies. Bundling is one way to save on insurance without compromising on coverage. Just discuss your insurance needs with the insurance agent, who can take a holistic look and find you the best insurance provider for your various policies.
3. Discounts
Price is one of the main motivations for switching insurance companies. But it’s important to weigh what you pay for insurance against what you’ll get if you actually need to use it. Discounts can be a good way to save. For instance, parents see their insurance rates climb when adding a teen onto their auto policy. Many insurance companies offer discounts that somewhat offset this increase if the teen has good grades or takes a driving course. Ask about discounts that might apply to your evolving situation.
– Written by Jim Davis, last updated in January 2023.
– Photo is by Vasyl/AdobeStock.
