Is Your Insurance Keeping Up? Why an Annual Review Matters for Complete Protection

When was the last time you gave your insurance policies a thorough review? If this question makes you scratch your head, you are not alone. Most people in Reno, Nevada, and the USA set up their insurance and forget about it until it is time to file a claim or they are injured in an accident. 

However, reviewing your insurance policies yearly is as important as getting yearly physical checkups or doing a car’s routine checkups. Yearly checkups ensure that the insurance is keeping up with your life, which means it is updated and is providing the coverage you need. 

Let’s make one thing clear: an annual insurance review is not some sort of formality. Rather, it is an essential part of your insurance coverage to make sure your protection is up to date and your finances are under check. 

Life is fast-paced, and changes are bound to happen. Your circumstances, the economy, and even the insurance industry itself can change drastically. You or your loved one might face an accident and find out that you are underinsured or do not have any medical coverage. In times like this, only good insurance coverage and an accident lawyer Reno can protect you. 

So, let’s understand why an annual review of your insurance is so important and how it can benefit you. 

Why Is An Annual Insurance Review Important?

Life is unpredictable, and over the course of years, you might go through major changes that will impact your need for insurance. Here are a few good reasons why consulting with your insurance agent once a year is a good idea.

1. Changes In Life Influence Coverage

Life is not meant to stand still, and neither should your insurance. When you are dealing with significant milestones in your life, both joyful and challenging, it will affect your coverage needs. 

Here are a few examples – 

• When you get married or divorced, it may require you to combine or separate your insurance policy.
• Having a baby might lead you to buy additional coverage.
• When your kids leave for college, you might want to adjust your auto policy.
• When you are retiring, it may reduce your daily driving mile, which will potentially lower your Auto Insurance Premium.
• If you are buying a new home or making changes to your current home, your homeowner insurance requirements can change. 

2. Staying Updated With The Industry Changes

The insurance industry is continuously evolving and bringing new policies, discounts, and coverage to the market. When you do an annual review for your insurance, you can stay informed about these updates, which will make sure that you are not missing out on better deals or coverage improvements. 

For example, some companies offer telematics discounts if you have safe driving habits. They also offer clubbed options that save you money.

3. To Adjust To Economic Changes

Every year, there are a lot of ups and downs in the market, and it affects economic conditions, such as supply chain disruptions and inflation. It can also affect insurance rates and coverage requirements. Here is a quick example –

If there is a rise in the cost of building materials, your homeowner’s insurance coverage limit will need adjusting. This will ensure that your insurance can fully protect your property in case of damage. 

4. To Avoid Gaps And Save Money 

When you fail to update your insurance policy, you could become underinsured or even uninsured for certain risks. On the other hand, when you get rid of outdated or unnecessary coverage, you can lower your premiums.

When you get your insurance coverage reviewed annually, you can identify these opportunities and make sure you are paid only for the coverage you need. 

What Should Your Review?

So, when you are doing an annual review, here are the areas you must focus on –

Auto Insurance

• Is there any change in your driving habits? Have you reduced your mileage or joined a carpool?
• Do you have teen drivers at your home? Are they staying away from home due to college, or have any teens been recently added to your policy?
• Did you purchase a new car? Did you sell or pay off your car this year?

Homeowner’s Insurance

• Have you done any renovations in your home, like adding a new room, remodeling your kitchen, or replacing your roof?
• Have you recently bought or inherited some high-value items that need additional coverage?
• Have you recently moved out of your property or started renting a part of it?

Life Insurance

• Is your life insurance policy adequate, and does it meet your family’s needs?
• Have you listed anyone as your beneficiary, and if you have, are they the right people? 

Uninsured and Underinsured Motorist Coverage

Are you insured or underinsured? Inadequate uninsured/ underinsured motorist (UIM) insurance coverage will not protect you in case an accident occurs, and you will have to cover the medical bills and property damage out of your own pocket.

Medical Payments Coverage (Med Pay)

• Do you have a Med Pay set up to cover your medical expenses for you and your passenger, regardless of who is at fault in an accident?
• Med Pay is an important part of auto accidents and must not be overlooked during policy updates and reviews. 

Additional Policies

• Do you need specialized policies for your newfound hobbies this year? Like boating or hiking?
• Do you need umbrella insurance for extra liability coverage?

The Risks of Skipping An Annual Insurance Review

If you avoid getting your insurance reviewed annually, you will face a lot of significant problems –

• You will be left with inadequate insurance coverage and will be financially vulnerable in case of a claim.
• You might miss out on a lot of savings and end up overpaying for policies when there are so many better options available.
• You might end up with unnecessary expenses by paying for outdated or irrelevant insurance coverage.

When we talk about the risks of avoiding annual insurance review, it might sound exaggerated. But did you know just by moving to a new zip code, your insurance premium can change?

So, if you do not review your insurance, the new adjustments to your life will not be noticed, and it will end up costing you money or leaving you without any insurance and exposed to financial risk.

The Annual Insurance Check Up Is Important to Protect You From Financial Struggles During Accidents.

Getting an annual insurance review done is like preventive care for your financial health. It is a small investment that will protect you in case of accidents and help you save a lot. Life is not always the same, and you need to have complete protection when you need the most.

If you ever face an accident, Bradley, Drendel & Jeanney Law Firm will stand by your side and make sure you get the maximum claim. Our team of accident attorney in Reno has over 65 years of experience in handling motor and truck accident cases. 

We are Nevada’s trusted personal injury law firm, and we will protect your rights in case you face any personal injury. Get in touch with us today for a free consultation.