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Fall Insurance Checkup: 7 Things to Review Before the Year Ends
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Why Should You Review Your Insurance Every Year?
An annual insurance review is an opportunity to make sure your policies still reflect your current financial situation, property, family, and coverage needs.
It's not necessarily about buying more insurance. You may discover that you need additional protection, but you could also uncover coverage you no longer need or opportunities to simplify your policies.
Here are seven areas worth reviewing this fall.
1. Take Another Look at Your Auto Insurance
A lot can change in a year. Maybe you've purchased a new vehicle, paid off an auto loan, added a driver to your household, or changed how much you drive. Review your:
- Liability coverage
- Collision and comprehensive coverage
- Deductibles
- Drivers and vehicles listed on the policy
- Available discounts
- Current premium
If you're financing a vehicle, this can also be a good opportunity to understand whether you have Guaranteed Asset Protection (GAP) and whether you still need it.
How often should I review my auto insurance?
A yearly review is a useful habit, as is reviewing your coverage after major changes such as buying or selling a vehicle, adding a driver, or changing your driving habits.
2. Make Sure Your Home Insurance Reflects Your Home Today
Have you renovated your kitchen, finished your basement, replaced your roof, added a shed, or made another significant improvement? Changes to your home or belongings could affect your insurance needs.
Review your homeowners policy and consider whether your coverage still reflects your home and possessions. It's also a good time to update your home inventory, including photos and records of important belongings.
And remember: standard homeowners policies don't necessarily cover every type of loss. Review your policy's exclusions and limitations so you understand what is and isn't covered.
3. Rent? Don't Forget About Renters Insurance
If you rent your home, your landlord's insurance generally isn't intended to protect your personal belongings. Renters insurance can provide protection for personal possessions and may provide liability protection, subject to the terms of the policy.
If you've recently moved or purchased expensive items, fall can be a convenient time to review your renters coverage and update your inventory.
4. Revisit Your Life Insurance Needs
Life insurance isn't something you should necessarily "set and forget." Consider what's changed since you last reviewed your coverage:
- Did you get married?
- Have a child?
- Buy a home?
- Take on new debt?
- Change jobs?
- Experience a significant change in income?
If people depend on your income, consider whether your current coverage would still provide the financial support you want for them.
And if you receive life insurance through your employer, understand how that coverage works and what may happen if you leave your job.
5. Review Your Health Insurance During Open Enrollment
For many households, fall is also open enrollment season, making it a particularly useful time to review healthcare costs and benefits. Don't look only at the monthly premium. Compare:
- Deductibles
- Copays and coinsurance
- Provider networks
- Prescription benefits
- Out-of-pocket maximums
- Other covered services
The goal is to understand both what you'll pay for coverage and what you might have to pay when you actually need care.
6. Look at Your Deductibles and Emergency Savings Together
Your insurance coverage and emergency fund should work together. If you've chosen higher deductibles to lower your premiums, ask yourself:
Could I comfortably pay my deductible tomorrow if something happened?
If the answer is no, consider making your deductible amount one of your emergency savings goals.
For example, rather than treating insurance and savings as completely separate financial decisions, think of them as two layers of the same financial safety net.
7. Ask Whether Bundling Still Makes Sense
Bundling home, auto, or other insurance policies with the same provider can be convenient and may qualify you for discounts. But a bundled policy shouldn't automatically be assumed to be the least expensive or best option. Review:
- Your total annual premiums
- Your individual coverage limits
- Your deductibles
- Available discounts
- Whether each policy still meets your needs
The most important comparison isn't the size of the advertised discount. It's the overall cost and value of the coverage you're receiving.
Your Fall Insurance Review Checklist
Before you wrap up your financial planning for the year, ask:
- Have I experienced a major life change this year?
- Are my home and vehicles accurately reflected on my policies?
- Are my beneficiaries up to date?
- Do I understand my deductibles and coverage limits?
- Could my emergency savings handle an insurance deductible?
- Are there coverage gaps I should discuss with an insurance professional?
- Am I still getting appropriate value for the coverage I'm paying for?
You don't necessarily need to change anything. The goal is simply to understand your coverage and make sure it still fits your life.
Protect What You've Worked Hard to Build
Insurance is one part of a larger financial plan. The right coverage can help prevent an unexpected event from disrupting the savings and financial progress you've worked hard to build.
This fall, consider adding an insurance review to your seasonal financial checklist. A little preparation now can help you enter the new year knowing you've taken steps to protect your home, vehicle, family, and finances.
Your credit union is here to help you make informed financial decisions at every stage of life. If insurance products or financial planning resources are available through your credit union, explore your options and talk with a qualified professional about the coverage that's appropriate for your needs.
Insurance products, coverage, exclusions, eligibility, and availability vary by provider and policy. Consult a qualified insurance professional and review policy documents when making coverage decisions.
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