At least once a year. I know this sounds crazy but if you don’t you’re in danger of overpaying for insurance and/or being improperly insured.
Insurance companies change.
Each year, insurance companies are reviewing their portfolio to see what changes they need to implement to maximize profit. Their marketing message is that they are always there for us but they still have many other things to consider which include but not limited too:
- Number of customers
- Amount of expected insurance payments
- Previous year’s income
- Amount of claim payments
- Yearly expenses
Insurance companies change regularly this you can count on. Sometimes these adjustments are in your favor; most of the time they aren’t. Sometimes the changes are big but most often, they are small and gradual. Their goal is to make modifications in ways that prevent you from feeling them when it’s time to renew your policy. They want to maximize profit while also ensuring you don’t start shopping elsewhere.
The bottom line: review your policies yearly to ensure your insurance company is still offering you the most competitive pricing for your current situation.
Beyond growing a year older, you may have other changes. Income, job, family size, address and more are things that impact the pricing of insurance but more importantly, the type of insurance you need. There are few things more frustrating than filing a claim only to realize your insurance covers just a portion of the claim, or worse—doesn’t cover it at all. You can prevent this and ensure the policy you have properly covers your needs by reviewing your insurance each year.
If you haven’t had any major life changes, it’s almost guaranteed that the balance in your savings account has changed. As a result, you must review the deductible you have on your insurance policies.
Good news, you don’t have to do this alone!
A good, independent insurance agent can do this due diligence process on your behalf. At The Roux Company, we do this each year, for every single customer. You don’t even have to ask—it’s already part of our process.