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Why you should review your insurance every year

Posted on May 31, 2025 by admin

Why You Should Review Your Insurance Every Year (Don’t Risk Overpaying or Being Undercovered!)
Insurance isn’t a “set it and forget it” purchase—your life changes, and so do your coverage needs. Here’s why an annual insurance checkup is a must:

1. Life Changes = Coverage Needs Change
Did you experience any of these in the last year?

Got married/divorced? → May need to update beneficiaries or policies.

Bought a home or car? → Your auto/home insurance must reflect new assets.

Had a baby? → You might need more life insurance.

Started a business? → Time for liability or professional insurance.

Skipping updates? You could be overpaying or underinsured when disaster strikes.

2. Avoid Being Underinsured (Financial Disaster Waiting to Happen)
Home values rise → If you haven’t adjusted coverage, a fire or storm could leave you paying out of pocket.

Medical costs increase → An old health plan might not cover new treatments.

Car upgrades? Modifications or a new vehicle may need extra coverage.

Example: If you renovated your kitchen but didn’t update your home insurance, a burst pipe could mean $50K in uncovered damages.

3. Save Money on Premiums
Loyalty doesn’t always pay – Insurers often raise rates over time. Shopping around could cut costs.

Discounts change – Bundling, safe driving, or home security could now qualify you for savings.

Credit score improvements? Better credit = lower premiums in many states.

Pro Tip: Use a comparison site (like Policygenius or The Zebra) to check for better rates in minutes.

4. New Laws & Insurance Trends
Health insurance – ACA plans change yearly; missing open enrollment could lock you into a bad plan.

Auto insurance – Some states now require rideshare coverage if you drive for Uber/Lyft.

Climate risks – Flood & disaster coverage may be newly necessary in your area.

Example: If your state now requires PIP (Personal Injury Protection) and you haven’t updated, you could be fined or denied claims.

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