If you were to list out the things on your mind each day, Insurance typically isn’t one of the things on the top of the list. The times when it is on your mind are typically when you have to file a claim. But what people don’t think about often (if ever) is that life changes every year, and so does your need for insurance.
When my wife and I had our first child, we never considered that we should have a professional review our insurance and make sure we were covered for what life had for us next. And sadly, when I called up my agent a little while later because we bought a new car, she just set me up with a policy and said thanks. She never asked me if anything had changed in my life, nor did she explain to me the coverages she put on my new policy.
I didn’t realize that I wasn’t covered in many of the areas of my life that had changed recently. I didn’t realize the value of renters insurance, so I didn’t buy it, and if someone broke into my apartment and stole my computer, TV, iPod, and other expensive stuff, I’d be paying for it out of my savings account.
I did have a little bit of life insurance, but it wasn’t enough to pay my burial expenses plus give my wife a few years of my income so she would be well supported without me. Forget about paying off school loans and credit cards so she didn’t have to worry about that after I was gone.
Thankfully, I was required to have “”full coverage”” on my cars. I put “”full coverage”” in quotation marks, because it means something different to everyone. To my agent, it meant having $100,000/$300,000/$100,000 coverage, which means I was covered for $100,000 in liability per person, up to $300,000 per occurrence, plus $100,000 in property damage liability if I were to get into an accident.
It also included comprehensive and collision coverage to protect my car in the event I was in an accident. Now that I’m an agent, I know just how good that coverage was – I recommend that all of my clients have at least 100/300/100 coverage, as well as comprehensive and collision on their cars.
There was a problem with my agent’s idea of “”full coverage,”” however. She gave me a $0 deductible on my comprehensive and collision coverages. That seems, at first glance, to be a good thing. But for my family, with no claims for years, I probably spent more to have those $0 deductibles than I would have on paying a $250 deductible on the claims I did have.
What does your policy look like? Are you covered with 100/300/100 coverage or above, with comp and collision?
If you don’t have at least 100/300/100, it’s time for an insurance review.
Could you be over protected? If you are accident free, but carrying a $0 deductible, you could save money.
If you have a low deductible, it’s time for an insurance review.
Have you had your insurance reviewed in the past 2 years?
If not, it’s definitely time for an insurance review.