Insurance Checkup: Are You Properly Insured, and Could You Be Saving Money?

Insurance is a key part of building and maintaining your financial health. Think of it as a safety net: It helps you avoid draining your savings or going into debt if the unexpected happens.

Whether it’s protecting your home, car, or family, insurance ensures that one misstep doesn’t derail your financial goals. When it comes to safeguarding your long-term financial well-being, understanding your insurance options and doing frequent checkups is an important step.

Check you are properly insured

Only 56% of households are moderately confident their insurance would protect them in an emergency, and this number is trending down, according to Financial Health Network.

Even if you are confident in your coverage, it’s a good idea to review your insurance and shop around at least once a year. Don’t wait for your rates to rise to start looking at your options. Rates change, discounts come and go, and life events, like buying a home or adding to your family, can affect how much coverage you need.

Exploring your insurance options is essential to keeping your financial health secure.

Understand insurance pricing

Many factors influence what you pay for insurance. Your rates are shaped by your personal profile, which can include your credit score, driving history, age, and even where you live.

Insurers also look at the details of what you are insuring, such as the type of car you drive or the features and condition of your home. The coverage you choose matters, too. Higher coverage limits typically cost more up front, while higher deductibles can lower your premium but raise your out-of-pocket costs if you file a claim.

Knowing these factors can help you find the right balance of protection and affordability.

How to shop around for insurance

First, check your existing policies, and take note of:

• Coverage limits: What are they? Are they high enough to replace or repair what you own?

• Deductibles: Could your emergency fund comfortably cover them if needed?

• Exclusions: What’s not covered that might affect you?

• Additional protections: Do you need coverage beyond what your home or auto insurance includes? Are there any gaps in your coverage?

Next, get a handful of quotes for new coverage to see how the pricing compares to your current coverage.

Not all insurance is created equal, and prices can vary widely between providers, even for similar coverage. Shopping around allows you to find better rates. In some cases, you may be able to save hundreds of dollars per year. Plus, evaluating various quotes and coverage options allows you to ensure you have adequate coverage.

It might be tempting to look for the cheapest policies, but they may leave gaps that could end up costing you more later.

If you’re not sure where to start, VACU offers home, renters, and auto insurance through multiple top-rated carriers, making the shopping around part easy. You can reach out today to get personalized service from licensed insurance professionals through VACU Insurance Services.?