Are you one of the many people that make a big mistake when it comes to renewing your insurance policy? Hopefully you are not. But, if you fail to take the time to review your insurance policy, you are not only making a big mistake - you could be costing yourself money. In addition to losing money, you could also be operating under the assumption that you have specific forms of coverage, when in fact, you do not.
So, whether is it time to renew your policy or if you just have some extra time - look at your policy to clarify a question about your coverage that you have been meaning to look into. It is time to put your mind at ease and educate yourself at the same time.
When reviewing your home, auto, or travel insurance policy, pay attention to the fine print. Don’t just skim over the policy and assume that you know what is contained within. If you have questions, make sure you jot them down so you can talk with your broker about them.
Getting clarification is the main reason why you are reviewing your policy in the first place, so additional questions are bound to arise. But, if you don’t take the next step and get them answered, then you are no further ahead.
There are four main reasons why you should renew your policy annually.
- Incorrect Information: It is not uncommon for data entry errors to occur. Carefully review your policy to make sure that your personal information is correct. Incorrect information could cost you money.
- You may have coverage you don’t need: You should also review you policy to make sure that the coverage you have meets your needs. Too much coverage can be a bad thing, especially if you are paying for coverage that you don’t need or is not applicable to your situation.
- Things change: Over the course of a year things in your life could change that require you to update your insurance. You could move to a new house, get a new car or require additional insurance coverage.
- Clarity: Overall, you want to have clarity in knowing that you fully understand the insurance coverage you have for your home and vehicle.
Taking a few hours out of your day will not only create clarity about your insurance policy, it could also save you a large chunk of money in the long run.
How often do you review your insurance policy? What tips do you have for other people when it comes to reviewing their policy?