How To Spring Clean Your Insurance Policies
As you make your way through your spring-cleaning checklist, don’t forget to dig out your insurance policies and look them over. Here are some of the reviewable elements of your home, life and auto insurance policies discussed in this episode.
1. Make sure you’re not overpaying for insufficient coverage
Experts say the top insurance mistake is being underinsured, which happens when you fail to update your coverage as your property, lifestyle or needs change.
Take the time to assess those changes and determine where you need to adjust your insurance coverage. For example, if you like to entertain at home, consider increasing your liability coverage and purchasing a separate umbrella policy.
Umbrella liability policies typically offer a minimum of $1 million of additional liability protection and cost just a few hundred dollars a year.
2. Learn how to lower your premium
You may be eligible for discounts that can lower your homeowners insurance premium. Our golden rule is to ask! You may miss out out savings if you don’t ask what is available.
Learn more about unexpected ways to save on homeowners insurance
1. Update your beneficiaries
Many of us forget to update our policies when circumstances change. Life events such as marriage, getting divorced or having children should prompt you to update your beneficiaries.
2. Review the term of your policy
If you have term life insurance, it’s important to know when the term ends. An annual review will prevent a term policy expiration from sneaking up on you. Some term policies may be convertible to permanent insurance on their anniversary, which others may be convertible at the end of their term.
1. Reassess your comprehensive/collision coverage
If you’re driving an older car worth less than $1,000 – or less than 10 times the insurance premium – having comprehensive or collision coverage may no longer make sense. Dropping either the comprehensive or collision coverage may reduce your premium.
2. Ask about any new discounts.
Ask about any discounts that you may qualify for, such as:
- Multi-vehicle discount
- Good student discount
- Safe driver discount
- Loyalty discount
- Resident student discount
Learn more about how to save on car insurance.
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