Why Reviewing Your Insurance Annually Is Crucial
Your insurance needs evolve over time, and failing to update your policies can leave you underinsured, overpaying, or unprotected in critical situations. Here’s why an annual insurance review is essential—and what to check.
Top Reasons to Review Your Insurance Every Year
1. Life Changes Affect Your Coverage Needs
Major life events can make your current policy inadequate or unnecessarily expensive:
🏡 Bought a new home or car? → Need updated property/auto coverage.
👶 Had a baby or got married? → May need more life insurance.
💰 Increased income or assets? → Requires higher liability protection.
� Kids moved out? → Might reduce life insurance or adjust homeowners’ coverage.
2. Avoid Being Underinsured
Inflation and rising costs mean your home, car, or valuables may need higher coverage limits to match current replacement costs.
Example: A home insured for $300K in 2020 may cost $400K to rebuild today.
3. Save Money on Premiums
Discounts & Bundling: New discounts (safe driver, home security) or bundling policies (home + auto) can lower costs.
Better Rates: Insurance companies adjust pricing; shopping around could save hundreds.
4. Policy Updates & New Offerings
Insurers introduce new coverage options (cyber insurance, ride-sharing add-ons).
Laws change (e.g., minimum auto liability requirements).
5. Claims & Customer Service Issues
If your insurer was slow or difficult during a claim, switching could improve your experience.