It’s Time for Your Annual Insurance Checkup. Here’s How to Do It

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It’s important to have the right insurance coverage in place to protect against devastating financial losses. Learn how to vet your coverage for 2024 and beyond. 

Buying insurance is absolutely essential for everyone who drives a car, lives in a house or apartment, or has family depending on them. But while it may be tempting to just put policies in place and forget about them, the process of getting covered is not a one-and-done task.

In fact, it’s important to do an annual insurance checkup. And since the new year is here, now is the time to take care of this important job. Wondering how to do that? Just take these steps.

1. Check coverages to make sure the right protections are in place

One of the first and most important things to do in an annual insurance checkup is to make sure that the right insurance coverage is in place. That’s because people’s coverage needs can change over time.

For example, building materials have become very expensive in recent years due to supply-chain issues caused by the pandemic. While construction prices have been falling during certain periods in 2023, many experts believe the price of building will remain pretty high throughout the 2024 year as a result of increased demand.

With higher costs for building, property owners may need to increase their home insurance coverage limits to avoid getting hit with extra losses they’d have to pay out of their bank account.

It could also be important to increase life insurance coverage after certain lifestyle changes, such as having a baby. Or drivers whose car values have fallen may need to buy gap insurance that pays the difference between what a car is worth and the amount owed on a car loan at the time of a crash.

There are dozens of possible reasons why insurance coverage needs would change, including lifestyle changes such as adding a pool at home or buying a new car, so it’s worth taking a close look at each insurance policy, making sure the coverage limits are high enough to repair or rebuild the asset, and making sure there are no risks that should be transferred to the insurer that there is currently no coverage in place for.

2. Get quotes from several insurers to make sure that the policy is still competitively priced

The next key step in an annual insurance checkup is to get quotes from different insurers. That’s because:

The insurer offering the best price may change from year to year.Insurers tend to charge more to people who they don’t think will shop aroundNew insurance options could become available that are better and cheaper

To get quotes, consumers should have their current policies in front of them. Visit the websites of home insurance providers, as well as those providing life insurance, auto insurance, and other kinds of insurance that are in place. Get an online quote, specifying the same types of coverage as current insurance provides, and check out prices from at least three or four different companies.

By completing these two important steps at the start of a new year, policyholders can make sure that they have the right insurance in place going into 2024 — so their assets are not at risk all year long.

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