Insurance New Years Resolutions - Keep These and You Could Save $$$!

The exercise equipment gathering dust in Americans' bedrooms and basements is a familiar sign of the way New Year's resolutions often are quickly abandoned. But a few resolutions you'll not only want to make but also stick with involve being more prudent about insurance.

That means spending wisely and getting the coverage that matters most. It's a good idea to start each year by taking stock of your coverage because auto, home, life and other insurance needs change over time -- as you move, switch jobs, add to your family, change vehicles and grow older.

When you have to use your insurance, the last thing you want is to learn that you don't have enough coverage. But you also want to make sure you aren't carrying more insurance than you really need.

Here are some New Year's resolutions to help you fine-tune your insurance policies.

1. Auto Insurance

• Because auto insurance premiums may be tied to how often you drive and to your vehicle model, make certain you've alerted your insurer to any changes in driving habits.
• Consider dropping collision and comprehensive coverage on older vehicles to save money. Collision pays the costs of repairing cars following accidents, while comprehensive pays for losses not caused by accidents, such as theft or fire damage. Since your insurance company will repair or replace only up to the value of the vehicle, paying for full coverage on an aging car may not be worth it.
• Another great resolution is to drive carefully. The most important thing that determines what you pay for auto insurance is your driving record. Observe the law.

2. Home Insurance

• The start of a new year is a great time to update the inventory of your possessions. You'll need an accurate list if you ever have to make a home insurance claim.
• You probably have received (holiday) presents, and there are new things in the house. Some of them could be worth a lot: your TV, your stereo, your computers, your clothes. If you don't want to take time to write things down, a very common way is to make a video recording of your home. If there is a theft, you can go back and say 'I had this stuff.'
• Consider a special rider to cover expensive items that may exceed the limits of your home policy. If you have a big flat-screen TV that costs $1,000, you may want to schedule that separately. The cost for a rider is usually pretty inexpensive. You can make sure your TV is covered for everything, including your 6-year-old kid hitting a ball through it.
• Finally, make sure your home insurance coverage remains high enough if you ever have to repair or rebuild at today's construction prices.

3. Life Insurance

• As you launch into a new year, look for ways to cut life insurance costs. Have you become healthier? Did you stop smoking? Did you lose a significant amount of weight? Are you off medications? You may now qualify for preferred rates.
• If you're the family breadwinner, it's a good idea to make sure a nonworking spouse or domestic partner also has adequate coverage. The main reason for life insurance is to replace lost income, but a homemaker's work has value, too. Think about what your partner does in any given month to keep your family functioning, you would have to replace that expense.

4. Health Insurance

• Get familiar with your coverage. Know the limits of your insurance before you start using it. No one wants to begin the year with a nasty case of sticker shock from a steeper-than-expected doctor’s bill. The particulars of your plan may have changed compared with last year, so it’s a good idea to review your policy.  We can help you do that, as well as compare prices and quality measurements for a wide range of non-emergency care. Doing that could save hundreds of dollars on an outpatient procedure for people with high-deductible plans. If you’re worried about a high deductible, you might want to think about adding to your insurance coverage.
• Should you change your deductibles? You should be familiar with your deductibles so there are no surprises if you have a loss. Raising deductibles is a common way to lower insurance premiums. We can help you determine if this is the best course of action for you.
• Use it, don’t lose it. This applies to flexible spending accounts, which let workers set aside income before taxes to cover health-related expenses. Resolve to use your entire balance before you lose it. Check with your employer on how that might happen. Some companies may require you to spend your money by the end of the year or give you a grace period into the new year.
• Learn deadlines: If you don't like your coverage, you can change it. But you have to know when the next chance will arrive. Employers hold open enrollment periods every year, generally in late fall for coverage that starts Jan. 1. That's the main window in which people can adjust coverage, unless they have a life-changing event, like a marriage or the birth of a child. Likewise, coverage sold outside the employer-sponsored market also must be purchased largely during an open-enrollment window. For 2016 coverage, that window closes Jan. 31.
• If you miss the open enrollment windows and have no coverage, consider a short-term or limited benefits plan. These can provide some protection from a big medical bill, but they generally offer skimpier coverage than what you can get through an employer.

5. Flood Insurance

• According to the Federal Emergency Management Agency, or FEMA, 90 percent of major natural disasters in the U.S. involve flooding. Yet many at-risk homeowners choose to roll the dice and skip flood insurance.
• You should resolve to buy flood coverage if there is a moderate chance that your home could be damaged by rising waters during a storm. In the wake of Sandy and other storms with intense flooding, many homeowners found out that their homeowners insurance doesn’t cover flood losses. Even if your mortgage company doesn’t require it, a flood insurance policy can be an important piece of protection you should investigate.

6. Earthquake Insurance

• Like flooding, earthquakes are not covered by most residential insurance policies. Assessing your need for a special earthquake insurance policy should be high on your list of New Year's resolutions. Nearly 75 million people in 39 states are at some risk from earthquakes, according to a U.S. Geological Survey.

A New Year is a new start, and a time to start over. Committing yourself to these resolutions can help provide you with peace of mind, more protection and, hopefully, a little more money in your wallet to start the year.