The start of each year often inspires people to improve their lives. This year,
the experts at Insurance.com suggest that people broaden their list of New Year
resolutions by evaluating their personal life, auto and homeowners insurance
needs for the coming year.
During the last year, people may have seen pay raises, higher monthly expenses
or the birth of a new baby. These kinds of changes in circumstances and responsibilities
can significantly effect a family's insurance requirements.
"Insurance.com recommends that policyholders take a more active role in
managing their insurance coverage this year," said Steven Paul, vice president
at Insurance.com, the online insurance resource. "They can start by understanding
their policy needs, then shopping around and comparing their current rates with
other providers."
The insurance resolutions are simple:
Resolution #1 - Life Insurance
Carry Enough Coverage: "I will not fall short in protecting my family's
future." While people do not like to dwell on the subject of life insurance,
policyholders should understand how much coverage they need to protect themselves
and their families. The life insurance coverage most people carry is not sufficient,
which can lead to a false sense of security. Policyholders should resolve to
carefully think about their family's future needs and evaluate whether their
current policy would adequately protect their family in the case of misfortune.
Insurance.com offers a few guidelines to help policyholders establish the appropriate
amount of coverage, beyond the need for "final costs," such as funeral
expenses. Regardless of which spouse is the primary breadwinner, both need to
carry coverage to replace any lost income or rise in household expenses if one
were to die. In addition to purchasing coverage that would provide regular income,
policyholders should consider adding more protection to cover the sum of their
outstanding debt, as well as adequate protection to cover six months of emergency
living expenses for their family. Finally, some policyholders may choose to
purchase still more protection in the amount needed to ensure a college education
for all of their children.
Resolution #2 - Homeowners Insurance
Maximize Existing Coverage: "I will ensure my policy fits both my property
and liability needs."
Because homeowners insurance offers a broad range of protection, determining
the right amount and type of coverage can be confusing. While property insurance
covers the structure of a home and its contents, carrying the appropriate amount
of liability coverage provides equally important protection for personal liability,
medical payments, damage to someone else's property and personal injury to others.
Without adequate liability insurance, homeowners could put themselves at risk
for a catastrophic financial loss, if, for example, they were responsible for
an accident that resulted in a lawsuit.
Liability typically provides coverage for up to $100,000 in damages. However,
some homeowners may decide they need a higher level of coverage based on their
individual situations.
Resolution #3 - Auto Insurance
Be an Educated Consumer: "I will not renew my auto insurance passively."
Each year, many drivers receive their car insurance renewals by mail and file
them away without a second glance. With auto insurance costs rising, drivers
should consider a more proactive approach to renewing their policies this year.
The experts at Insurance.com suggest drivers shop around and consider the following
questions before renewing their auto insurance for the coming year:
- Does their current provider offer competitive rates?
- Is the underwriting insurance company financially solid and able to support
claims?
- What discounts are offered by their provider and are they receiving all
of the discounts for which they are eligible?
- What level of customer service does their current insurer offer? Does the
company provide extended hours of operation, 24-hour claims service and knowledgeable
staff?
Taking time to review insurance coverage and comparison-shop for competitive
rates can help drivers save money on their insurance policies in the coming
year.
Please note that this description/explanation is intended only
as a guideline.