When you think about spring cleaning, you probably picture overflowing closets, dusty shelves, and boxes stacked up in the garage. But spring is also a great time to tidy up something that often gets overlooked: your insurance policies. Just like your wardrobe needs a good refresh from time to time, you also want to make sure your insurance coverage is up to date. A quick annual review can help make sure you have the proper insurance protection and can even help you identify potential opportunities to save money.
Check out this simple five-item checklist that can help you clean up your insurance coverage and potentially keep more money in your pocket.
1. Has Your Home’s Value Gone Up?
One of the most important things to review each year is your homeowner’s insurance coverage. Over the past several years, the cost of construction, labor, and building materials has increased significantly. Even if your home’s market value hasn’t drastically changed, the cost to rebuild it after a major loss may be much higher than it was when you first purchased your policy. If your dwelling coverage hasn’t been reviewed recently, there’s a chance it may no longer reflect today’s rebuilding costs. Making sure your dwelling coverage is up to date can help prevent unpleasant surprises if you ever need to file an insurance claim.
2. Did You Add or Lose a Driver in Your Household?
Life changes quickly, and your auto insurance policy should reflect those changes. Maybe your teenager recently got their driver’s license, or perhaps your young adult moved out and is no longer driving your car. Any change in household drivers can affect your insurance rates and coverage needs. While adding a new driver is something most people remember to do, sometimes folks forget about removing a driver! If someone no longer lives in your household or regularly uses your vehicle, you may be paying for coverage that no longer applies. Spring is the perfect time to double-check that everyone listed on your policy still belongs there and that nobody has been accidentally left off.
3. Did Your Driving Habits Change?
A lot has changed in how people work and travel over the past few years. If you’re working from home more often, driving fewer miles, or no longer commuting every day, your insurance company may have options that better match your current driving habits. In fact, you may still be insured based on mileage estimates from years ago, even though your actual driving patterns have changed significantly. Lower annual mileage can sometimes lead to savings on your auto insurance. It’s worth reviewing your driving habits to make sure you’re not paying for coverage based on outdated information.
4. Are You Still Paying for Coverage You Don’t Need?
Spring cleaning is all about getting rid of things you no longer use. The same idea can apply to your insurance. As vehicles age and lose value, certain coverages may become less cost-effective. For example, if you have an older vehicle worth less than about $4,000, it may be worth discussing whether comprehensive and collision coverage still make financial sense. However, reviewing your coverage can help you make sure you’re spending your insurance dollars wisely instead of automatically paying for protection that may no longer fit your needs.
5. Are You Missing Any Discounts?
This may be the easiest way to uncover savings during your insurance spring cleaning. Many people qualify for discounts they don’t even realize exist!
Some commonly overlooked opportunities include:
- Good driver discounts
- Loyalty discounts
- Multi-policy discounts
- Paperless billing discounts
- Automatic payment discounts
Insurance companies regularly update their discount programs, and qualifying factors can change over time. A discount you didn’t qualify for a few years ago may now be available. That’s why it’s worth asking your insurance professional to review every possible discount you may be eligible to receive. A few minutes of review could potentially result in meaningful savings throughout the year.
A Little Insurance Spring Cleaning Goes a Long Way
A simple annual checkup can help make sure your coverage matches your current life, identify opportunities to save money, and provide peace of mind that you’re protected where it matters most. Spring is the perfect reminder to dust off your coverage, tidy up outdated information, and make sure you’re getting the most value from your policies.
SIG offers free policy reviews—bring yours in, and we’ll help you find any gaps or savings.