Essential Questions to Ask When Reviewing Your Insurance Policies

These questions should guide your year-end insurance review.

Whether it be your auto, life, or business insurance, all your policies should be reviewed on an annual basis.  If you haven’t already updated your policies this year, then time is of the essence.  Ready to review your insurance policies but not sure where to begin?  Then ask yourself these questions to get started.

  • How has my life changed this year?

One reason to conduct a year-end review is to ensure that all your insurance policies are updated to accurately reflect your circumstances.  If you moved, got a new car, had a child, or made any other major life changes, then it’s important that your policies reflect these changes.  Keep in mind that if your insurance provider does not have accurate information, then they can refuse to renew your policy or can refuse to cover claims.

  • Does my policy show unexpected changes?

Another reason why you should conduct a year-end review is to check for any policy changes.  For instance, you might notice that your policy is showing premium increases.  While many increases are legitimate and can be explained by your agent, some increases can also be the result of mistakes.  Make sure you understand every change in your policy before renewing to ensure that you are not overpaying for your coverage.

  • Can I raise my deductibles?

By now, you probably know that your insurance deductibles and your premiums have an inverse relationship.  This means that the higher your deductibles, the lower your premiums will be.  Policyholders are encouraged to assume a higher deductible as a means of saving money on their coverage.  So, during your review, look at your deductibles and decide if you can afford to raise them.  Keep in mind that you should never raise your deductibles to an amount that’s higher than you can comfortably afford.  Doing so could prevent you from accessing your insurance when you need it the most.

  • Do I have coverage gaps?

Finally, you need to look at your policies and determine if they are capable of offering you the comprehensive coverage that you need.  In some cases, simply raising your coverage limits will not offer you an adequate amount of protection.  If this is the case for you, then you need to consider securing brand-new policies or securing insurance endorsements to address your coverage gaps.

These are some of the important questions to ask yourself when reviewing your insurance.  Do you need help with your auto, life, or business insurance?  If so, then contact the experts at CIA Insurance and Risk Management.  We are ready to assist you with all your coverage needs today.

Post written by Mike Rutkowski, Advisor | Commercial Risk Management (CRM)

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