Insurance policies safeguard your personal and business interests, but how do you know when to review them and when to look at other coverage options? Shopping for insurance isn’t just about getting the lowest premium; it’s about ensuring the coverage you have meets your evolving needs. If you’re wondering how frequently you should check the marketplace, here’s a guide that explains when it’s the right time and why it matters.
Why Reviewing Your Insurance Matters
Over time, personal and business circumstances change. A policy that worked perfectly for you two years ago might not offer the same level of coverage or value now. Regularly shopping for insurance ensures:
- You’re not overpaying for outdated policies.
- Your coverage aligns with your current risks and responsibilities.
- You’re taking advantage of any emerging products or competitive offers.
But how often should you be reviewing and shopping for new policies? Here are four scenarios that signal it’s time to take another look.
When Should You Shop for Insurance?
- Life Changes or New Interests
Major life or business changes are a clear indicator that it’s time to revisit your insurance policies. Consider the following scenarios:- Personal Life Events: Got married, had a baby, or purchased a home? These milestones come with new responsibilities that require additional coverage.
- New Assets or Hobbies: Bought a luxury car? Started boating on the weekends? Specific policies, like auto or marine insurance, may be ideal for these interests.
- Business Growth: Expanded your operations or started offering new services? Your current business policy might not cover the additional risk.
When your life changes, it’s critical to ensure your insurance evolves with you.
- If It Has Been a While
If you haven’t checked the marketplace recently, it’s likely time. Most policies, especially car and home insurance, are renewed annually, giving you an easy benchmark for comparison. Competitive rates, improved policy features, or evolving market conditions could mean better options are available now. Many providers offer discounts or tailored plans, but you won’t know unless you actively look. - Increase in Personal Worth or Business Revenue
An uptick in your net worth or a significant increase in your business revenue is a clear signal to reevaluate your coverage:- For Individuals: Owning more valuable assets may expose you to higher liability in case of accidents or lawsuits. Upgrading your coverage might be essential.
- For Businesses: Higher revenue often means more activity, larger operations, or additional employees, all of which can increase risk exposure. Ensuring your business insurance policy scales with growth prevents potential gaps in coverage.
- When Your Agent Shops for You
Partnering with an independent insurance agent gives you the chance to have someone knowledgeable shop for you. Our agents keep up with industry trends, new products, and key policy updates. They can identify changes you might not have considered and help you optimize your coverage.
Best Practices for Insurance Shopping
When reviewing policies, keep these tips in mind:
- Compare Coverage, Not Just Premiums: The lowest premium might seem appealing, but if it compromises on essential coverage, it could cost you more in the long run.
- Bundle Policies for Savings: Insuring multiple assets (like home and auto) with the same provider often reduces overall costs.
- Leverage Expert Insights: Consult with our team to identify gaps in coverage or highlight beneficial policy options.
Talk with our Agents for “Shopping” Support
Insurance shopping doesn’t have to be a complicated or time-consuming process. By staying proactive, you’ll ensure you’re always getting a policy tailored to your current needs at a competitive rate. Not sure where to start? Reach out to our team at Plummer Insurance today for a consultation. Their perspective can help you assess your current policies, evaluate market options, and choose coverage that aligns with your goals.