This year is already making its way through its second month. The shock that we are indeed in 2024 might finally be shaken a bit from your eyes, but that clarity tends to be replaced with a scramble– 

Do I have everything? Am I doing everything right? Have I started the year the way I’m supposed to?

There are so many ways you can start off your year, and in our last post we shared with you one way to set yourself up for success, security, and proper protection. It may not be as glamorous as many of the resolutions, or goals you hear being passed around, but it is one that is more than just an ideal first step, smart insurance planning and updating should be seen as a requirement. 

Updating your insurance coverage is a good practice in seeing what your last year has been and looking forward to where you are wanting your life to go in the coming year. You can even make it extra special with a bit of honoring all you have done and been through, and setting the intention of all you know you are capable of. 

With how detailed and ostensibly confusing raw insurance policies can be, how do you go about smart insurance planning and the subsequent insurance coverage updates that are needed?

Well, you’re already off to a good start finding a comprehensive guide to smart insurance planning, so lets start there!

Smart Insurance Planning: Insurance Mistakes to Avoid

After reviewing those life changes that would elicit a needed update in your insurance policies, you’re now ready to put something into action. You don’t want to rush into the process of modifying, altering, changing, or completely renovating your coverage though. 

Sometimes, hastily updating insurance coverage can lead to some common (and costly) mistakes. 

Lowering Coverage Limits Unnecessarily: 

Though there is a time when coverage limits are lowered– for example, looking over the age, value, and fix-ability of your vehicle is just one instance of when this can be responsibly done. 

While reducing coverage limits may lower your premiums, it can leave you financially vulnerable if you experience a significant loss. Make sure to carefully evaluate the potential financial impact before decreasing coverage limits.

Raising Deductibles Too High:

Opting for very high deductibles can lead to lower premiums, but it also means you’ll have to pay more out of pocket in the event of a claim. Choose deductibles that align with your financial comfort level and ability to cover unexpected expenses.

It is noted that a higher deductible for your auto insurance policy can save you money in the long run (an average of $278 per year) as long as you are a good driver, with a clean driving record, and one who doesn’t tend to bend fenders, or get into the kinds of situations that would require a costly claim. 

Excluding Important Coverage:

Removing specific coverage types or endorsements to save money may leave you exposed to risks that could have severe financial consequences. Ensure that you understand the implications of excluding certain coverage and only make informed decisions. 

The best way to do this? Refer to those you trust in the industry.

Neglecting Changes in Asset Values:

If the value of your assets has increased over time, failing to update your coverage limits accordingly may result in inadequate protection. Underinsurance has the potential of ending in an overall loss in the event of a claim. 

Not having the most up-to-date value covered means you won’t receive a payout on the most up-to-date value of what you actually lost. Regularly assess the value of your assets and adjust coverage as needed.

Overlooking Policy Exclusions:

Policies often have exclusions that specify what is not covered. Failing to review and understand these exclusions can lead to misunderstandings during a claim. Be aware of any limitations in your coverage.

Think of when we shared about the limitations as they pertain to home insurance extending to cover your boat parked in the driveway, but not equivalent to what a full watercraft insurance policy would cover. 

Or alternatively, when we explained Water Seepage or Leakage Coverage and specifically what types of water damage it does not cover.   

Limitations do exist. 

Skipping Regular Policy Reviews:

Neglecting to review your policies regularly may result in outdated coverage. Changes in your life, such as buying a new home or starting a business, should prompt a reassessment of your insurance needs. Though this is something you clearly know since you are here, it is worth repeating time and time again. 

Big life changes that merit and deserve the right coverage happen every 12 to 18 months– take the time to review them so you don’t get stuck with outdated and incomplete coverage. 

Not Informing Insurer of Changes:

Failing to inform your insurance company about changes in your circumstances, such as a new address or additional drivers, may lead to coverage gaps. Keep your insurer updated to ensure accurate and up-to-date coverage.

Afterall, it would be silly to spend the time reviewing all your changes but not informing your insurer. 

Ignoring Specialized Coverage Needs:

If you have unique risks related to your business, profession, or personal situation, neglecting to secure specialized coverage may result in gaps in protection. Consider any specific needs that require additional coverage.

Common examples can relate to personal insurances covering items of rare ownership, large events, or even health associated disability insurances; business insurances can cover cyber securities, tools, and vehicles, or workman’s comp. 

Choosing Price Over Quality:

At the end of the day, there are some folks that think the goal is to find the corners they can cut, the dollars they can save. Though, opting for the cheapest insurance without considering the quality of coverage or the reputation of the insurer can be a big mistake. Balance cost considerations with the need for reliable and comprehensive coverage.

You’re here to do your homework in knowing what not to do in updating your insurance as you are seeking the right coverage for all areas of your life. 

Though it is possible to unintentionally update your insurance in a way that provides less coverage or leaves you underinsured, there are also the ways in which you can update your insurance to truly supply the security and protection you seek. 

Smart Insurance Planning: Having the Right Insurance Agent for Your Updated Needs

All in all, the process of reviewing, updating, and navigating potential risks and mistakes in renewing your insurance feels a bit overwhelming, right?

It’s almost as if there is a whole industry filled with folks who have devoted their careers to making this form of work and service their specialty…

Okay, so it is a whole lot less “almost as if” and more so “very much” the focus of those who are committed to serving their community in ways of guiding them through finding the right coverage to ensure, in the event something happens, they are taken care of. This isn’t a new idea either; you know this if you know us here at Ashland Insurance. 

The kind of smart insurance planning we are speaking of when you’re looking to update your coverage has a lot of advantages when working with independent insurance agents. These are the kinds of benefits you not only experience when updating your coverage, but when doing it with us. 

Choice and Comparison:

Independent agents work with multiple insurance carriers, providing you with a broader range of options. This allows you to compare different policies, coverage options, and prices from various companies to find the best fit for your updated needs.

Objective Advice:

Its good to remember that independent agents are not tied to a specific insurance company. We can provide impartial advice. Our goal is to find the most suitable coverage for you, taking into account your specific requirements and budget as they are growing and changing in this new year.

Customization:

We tailor insurance packages to your unique situation. A lot happens in a single year and we know how to create the coverage and policies that fit for you rather than making you fit to a policy. It’s this kind of  flexibility that customizes coverage based on your everchanging individual needs– whether it’s for specific coverage limits, deductibles, or additional endorsements.

One-Stop Shopping:

Rather than contacting multiple insurance companies individually, independent agents can handle all your insurance needs in one place. This streamlines the process and saves you time, especially when reviewing an entire life to protect can already feel like a lot of work. 

Local Knowledge:

If there is one thing you know of us, it’s that we have a deep understanding of the local insurance market and provide insights into regional factors that can affect your coverage needs. It’s this local knowledge that can be valuable when selecting the right policies for your updated needs in what may be a new place for you.

Personalized Service:

Independent agents often provide a higher level of personalized service. You can establish a long-term relationship with your agent, who understands your history, preferences, and changing needs.

Cost Savings:

Oftentimes it’s the change in finances that drives a review and desired update in insurance coverage. Rather than succumbing to some of the mistakes mentioned above around unnecessarily cutting coverage just to save a buck, it’s nice to know that when working with an independent agent, you are working in a more diverse marketplace. 

This leads to more savings meaning there is more available to support the changes you’ve experienced in the last year, and those you are prepping for in the coming year. 

This year is already moving by us quickly. There is a lot that gets caught up in the current, but if there is one piece of advice you can take from us it’s this- don’t forget to update your insurance and ensure all areas of your life, as they are changing, are adequately protected.

With any and all questions you have, we are here to help.

541.482.0831 Ashland

541.857.0679 Medford