Insurance is hardly ever top-of-mind (until you need it, of course).
And if you bought insurance ages ago — and haven’t thought of it since — you’re not alone. But take this as a sign to review your coverage for any gaps. It can pay off majorly, if worst comes to worst.
The Basic Elements of an Insurance Audit
The first step of any insurance audit is to take account of what you’re actually interested in reviewing. If you have a basic renter’s, home or car insurance plan, you’ll be primarily focused on checking…
- What’s covered in the boilerplate plan
- What you need to add separately
- How much your current/ projected monthly bill costs
- If your coverage level is still meeting your needs
Remember: Insurance can get complicated. Your plan’s coverage could have changed even if you haven’t moved in years, or have been driving the same car for a decade. That means you owe it to yourself to break out your fine-toothed comb, and do your due diligence.
When Should You Review Your Coverage?
Typically, you’ll want to do an insurance check-in once per year, or anytime you experience a major life change, like a move or marriage. Even small changes can affect how much coverage you need (or don’t).
Step 1: Gather Your Policies
Start by grabbing the insurance plans you already pay for. Your policy should be available online, or can be accessed by contacting your insurance provider.
Once you have all the information in-hand, note each plan’s monthly or annual premium, deductible and categorical coverage limits. Listing everything our up-front often reveals overlaps or gaps right away.
Step 2: Mind the Gaps
Now that you know what’s covered (and what’s not), you can begin to assess risk. That could mean asking yourself questions like:
- Is my flood insurance robust enough to handle rising risks in my area?
- Is it worth paying a little more each month to insure that expensive family heirloom?
- Am I able to cover the deductible without using credit?
- What coverage do I no longer need?
Step 3: Be Real About Your Budget
Insurance is meant to reduce financial stress, not create it. So if premiums are crunching your budget, revisiting your insurance plans is even more crucial.
If you cannot afford the insurance level you’d be most comfortable with, make a list of everything you’re concerned about, from most important to least. Take the highest-priority things (like your home or car insurance), and make sure you can afford the most essential elements from those primary plans.
You might also call your insurance provider to see where bundling policies could help you save, or how you could remove unnecessary add-ons. Every dollar you free up can help support your broader financial goals.
If Debt is Making Insurance Unaffordable, Get Help
If you find yourself having to choose between protecting your assets and paying your debts, know that there could be a better way to find balance.
At Accredited Debt Relief, we simplify the process of getting debt-free — and can save you 40% or more on eligible monthly payments. And with less pressure from debt on your budget, we can make it easier to afford the coverage you need.