Insurance is one of those things that can be easy to set up and then forget about. Once your home and auto policies are in place, you may not think much about them until your renewal comes around, your rate changes, or you need to file a claim.
However, your life can change quite a bit between renewals. You may buy a new vehicle, move into a different home, get married, renovate your house, or add another driver to your household. Changes like these can affect your insurance needs, which is why reviewing your coverage from time to time is so important.
At Davis Insurance Agency, Inc., we are an independent insurance agency based in Spring Hill, Tennessee, specializing in home and auto insurance and serving people throughout Tennessee. We help our clients review their insurance options and make sure their policies continue to make sense as their lives change.
Here are five times when it may be a good idea to review your insurance coverage.
1. When You Buy or Sell a Vehicle
Buying a vehicle is exciting, but insurance should be part of the conversation before you drive your new car home.
Different vehicles can have very different insurance costs. The year, make, model, value, safety features, and other factors can all affect the cost of insuring a vehicle. Because of this, it can be helpful to get an insurance quote before making your final decision on a new vehicle.
If you already have auto insurance, you will also need to make sure your new vehicle is properly added to your policy. This is a good opportunity to review the rest of your auto policy as well.
For example, you may want to review your deductibles, coverage selections, listed drivers, and other policy information to make sure everything is still accurate.
Selling or trading in a vehicle is another reason to contact your insurance agent. Once you no longer own a vehicle, your policy may need to be updated to reflect that change.
Keeping your auto policy current helps make sure it accurately reflects the vehicles and drivers in your household.
2. When You Move
Whether you are buying a house, renting an apartment, or moving to another part of Tennessee, a move is a great time to review your insurance.
If you purchase a home, you will typically need homeowners insurance. Your lender may have certain insurance requirements if you are financing the property, but your policy also plays an important role in protecting your home and belongings.
Even if you already own a home and are simply moving to another one, you will need a policy that reflects the new property.
Renters should think about insurance too. A landlord’s insurance generally protects the building itself, but it does not replace a renter’s personal belongings. Renters insurance can provide coverage for personal property and personal liability, depending on the policy.
Moving can also affect your auto insurance. Your address is one of the pieces of information used when determining your auto insurance rate, so it is important to notify your insurance company when you move.
If you are moving to Tennessee from another state, it is especially important to speak with a local insurance agent about transitioning your coverage.
3. When Your Household Changes
Major changes in your household can also mean changes to your insurance needs.
Getting married is a perfect example. Newly married couples may have separate auto policies, different insurance companies, or different coverage selections. Reviewing everything together can help determine whether combining policies makes sense.
This is also a good time to look at bundling home and auto insurance. Many insurance carriers offer discounts when eligible policies are placed together, although the available discounts and savings vary by company and customer.
Marriage is not the only household change that matters.
If someone moves into or out of your household, you should let your insurance agent know. The same is true when a teenager or another household member becomes a licensed driver.
Insurance companies need accurate information about household members and drivers. Keeping this information updated can help prevent problems later and gives your agent an opportunity to review your coverage with you.
4. When You Make Significant Changes to Your Home
Home improvement projects can change more than the appearance of your house. Depending on the project, they may also affect your homeowners insurance.
If you complete a significant renovation, addition, or other major improvement, it is a good idea to contact your insurance agent.
For example, maybe you finish a basement, build an addition, replace certain major features of the home, or make another substantial improvement. Your current policy was originally written based on information about your home at that time. Significant changes may mean that information needs to be updated.
Certain additions to your property can also create new insurance considerations. Installing a swimming pool, adding a detached structure, or making other substantial property changes are all good reasons to have a conversation with your agent.
You do not necessarily need to call your insurance agent every time you paint a bedroom or replace a light fixture. But when you make a major change to your home or property, it is worth asking whether your insurance should be updated.
5. When Your Policies Renew
You do not need a major life event to review your insurance.
Your policy renewal is a natural opportunity to take another look at your coverage.
Insurance rates can change over time for many reasons. Your own circumstances can change as well. A policy that made perfect sense a few years ago may not necessarily be the best fit for you today.
When reviewing a renewal, it can be helpful to make sure the basic information on your policy is still correct. Are all of your vehicles listed accurately? Are the correct drivers included? Is your address correct? Have you made any significant changes to your home? Have there been any other major changes since you last reviewed your insurance?
This is also where working with an independent insurance agency can be especially helpful.
Independent insurance agencies are able to work with multiple insurance carriers rather than representing only one company. If you are concerned about your renewal or simply want to review your options, an independent agent may be able to compare available options from different carriers.
Price is important, but it should not be the only consideration. Coverage, deductibles, discounts, eligibility, and your individual insurance needs should also be considered when comparing policies.
Don’t Wait Until You Need Your Insurance to Review It
The best time to discover that something on your insurance policy needs to be updated is before you have a claim.
Insurance policies should change along with your life. Buying a car, moving, getting married, adding a driver, renovating your home, or receiving a renewal are all good reminders to take another look at your coverage.
Even if nothing major has changed recently, there is nothing wrong with checking in with your insurance agent and making sure your current policies still make sense for you.
At Davis Insurance Agency, Inc., we specialize in helping Tennessee residents with their home and auto insurance needs. As an independent insurance agency, we can help you review your current coverage and explore options from the insurance carriers we work with.
If it has been a while since you reviewed your home or auto insurance, contact Davis Insurance Agency, Inc. to discuss your coverage and see what options may be available for you.