The new year is a time of reflection; a ready-made reminder to us all that we should perhaps take stock of what’s happened and what will come next. And this makes it an excellent time to evaluate our insurance policies and make sure everything is on track going into 2023. Insurance should never be a one-and-done type thing. As 2022 ends, here are some important tips from analysts and experts about how you should consider your auto, home, and life insurance policies in the coming year.
The most common insurance pitfall for drivers is a combination of being underinsured and not understanding the coverage they’ve already purchased. Shockingly, up to 40 percent of drivers on the roads are not adequately insured for bodily injury and this can be financially disastrous. As the new year begins, make sure you have the best insurance policy at the best price that includes adequate amounts of bodily injury coverage on your auto policy — the most you can afford without derailing your budget. Almost equally important is making sure you’ve got uninsured/underinsured motorist (UM) coverage.
When reviewing your homeowner’s policy for the new year, there are three critical questions to ask yourself to determine whether or not your home is properly insured:
- What would it cost to rebuild?
- If I can’t live in my home, where will I stay?
- What would happen if someone was injured or killed on my property?
Homeowners often buy a policy with relatively low liability coverage, thinking it will save them money — but bumping it up is relatively inexpensive. As a homeowner you are exposed to liabilities from all sorts of accidents, which is everything from a slip and fall to a violent act. You need to consider just how much an event like that could cost and then protect yourself properly.
Also, keep in mind that if you run a business from your home you may need insurance through a commercial policy, especially if you store inventory on site or have customers coming to your home to conduct business.
Cost is going to vary depending on various factors, but generally speaking life insurance is incredibly inexpensive for the value it provides. What will you do if your spouse is not around and doesn’t leave the family financially secure? What will you do if you, the working member of the family, leaves the family behind without enough income to pay the bills, get rid of debts, or send the kids to school? Life insurance for you and your spouse takes just a few minutes to set up and saves years of struggle later if you need it.
If you’re ready to buy life insurance for the new year, it’s important to consider two things:
- Too many people purchase term life insurance — which pays only if death occurs during the term of the policy — with shorter durations than they should.
- Caution against shopping only for the lowest price tag. Choose A or A+ rated companies. They’re rated higher because they typically pay claims faster and have fewer complaints from customers regarding ease of funds disbursement and customer service.
If you already have life insurance, the new year is a perfect time to consider whether last year brought about changes that would impact your needs or the policy’s premium. A few things to consider:
- Have you experienced any major life changes that need to be reflected in the amount of coverage you have?
- If you have term life insurance do you know when your term expires?
- Positive changes to your health in 2022 can have an impact on your life insurance moving forward. For instance, if you’ve lost weight, quit smoking, or are no longer in need of medications for blood pressure or cholesterol, you can ask for a new medical exam with your current provider or take a medical exam with a new company to see if they offer a more competitive rate.
Spencer Insurance Agency, Inc. is an independent insurance agent located in Jenkintown, PA. We can provide coverage from many insurance carriers so you receive the auto, home, and life insurance for your budget and needs! You can reach us at (215) 885-2200 or online at https://spencerinsurance.com/.