I have already talked in this blog that the best way to save and be protected is to have your insurance up to date.
As important as saving on the price is having the insurance well done. Having the coverage you need to safeguard your wealth and that of your family should be your priority.
I am convinced that you do not have time to sit down and review your insurance contracts. Me too, but when it comes to prevention I try to take a while.
For me, October is an important month because a good part of the insurance that I have expires in December. Therefore, before the date arrives, I try to get my insurance up to date and if I can improve what I pay for it much better.
Do you know what you should check in each insurance, in addition to the price?
In order not to waste much time, in this article I will tell you what things I check in each of my policies.
In the family, we have two cars, very similar in type, power, and age. For a few years, both have the same insurance coverage. It is an extended third party that includes fire, theft, and moons. Of course, they also include accident insurance for the driver and travel assistance.
One has turned 10 and the other some more. Both policies enjoy the maximum bonus, so any technical increase in price affects them.
Due to the years of the car, and the real value of each one, it may no longer pay to continue to maintain some coverage. The same age advises reviewing the validity of some other guarantee.
So this year I will update this insurance by checking these two things:
1. The market value of the vehicle.
With this, I will decide if it is worth keeping the theft and fire guarantee. I can save a little more than 60 euros per policy by eliminating this insurance coverage.
2. The older the car, the more risk of breakdowns.
Therefore I will check if the limitations of travel assistance have changed due to the age of the vehicle. I will check if any limitation has come into force on the number of assists per year or the distance from which they will assist me on the road. In this sense, it is common to include a minimum radius of 25 km to receive help or limit it to 3 assistance per insurance annuity.
If the car is a few years old and is still fully comprehensive, you can cancel the coverage, including a franchise or contract only the total loss. With this, you can save up to 60% on the price of insurance.
To have these insurances up to date you do not need to touch any other guarantee. One because it is mandatory and the rest for necessary.
This year the home insurance policy is not included in the “up-to-date insurance” campaign. I had a review last year and the house has not undergone significant changes during this time, neither in the building nor in the content.
The insurance had not been reviewed for 3 years and had done work on the house, change doors and windows, the floor, and expand a room. In short, the value of the house had increased and the square meter had gone from 800 dollars to 925 dollars. In order not to fall into underinsurance on the continent, increase the sum insured by 20,000 dollars.
The insured capital of content had also increased. The difference with the previous inventory meant having underinsurance of 18%, so I had to increase the insurance sum by that proportion.
Do not stop reading this article to know what consequences this situation has. They tell me I have underinsurance. Why does it happen and how can I fix it?
After reviewing the content and container capitals, it was time to see what the limits of the insured capital were for certain coverages, and if they continued to suit my needs.
Once revised, I extended the limits of some guarantee, especially where the repair or replacement costs had been outdated.
Among others, increase the capital at first risk of the breakage of glass, the robbery outside the home, or the location and repair of water faults. Go from basic home assistance and legal protection to premium ones.
Ah! An important fact, I changed the company because the one I had did not suit my needs. If you want to know how I did it, enter here and get this free guide created to help you.
In short, 3.4 dollars more per month on the home insurance receipt.
Health should not be a luxury
If you are not one of the lucky ones who work for a company with high social benefits, health insurance can be a luxury item. To bring the insurance up to date, you must check if the health insurance benefits are sufficient. Advances in prevention, diagnosis, or medical treatment are evolving rapidly.
It is common for some time to pass from when the insurance is purchased until it is used. Therefore by not using it, you have not felt the need to review it. Review it and see if, with the price update, the benefits have also been updated.
It is expensive insurance, but it offers possibilities to adapt it to your economic situation. You can include or increase the copayment, suppress certain benefits, and thus adjust the price of the insurance.
To be honest, it is a modality that I do not currently include in my insurance portfolio.
If you are looking for savings with your insurance campaign up to date and you have thought about changing health insurers, first I recommend reading: 5 Things to keep in mind before canceling health insurance.
Life insurance, an eternal guarantee
The objective of taking out life insurance is to guarantee financial stability to your beneficiaries if you are absent. But to maintain economic stability it is not enough to sign the contract and forget that it is there. You are obliged to review it periodically to adapt the insured capital to your future expectations.
In my case, life insurance has been underwritten for more than 30 years. Since then I have reviewed it 4 times. In the first two, double the insured capital, in the last two only increase it. In the third review, the possibility of having an accident increased considerably, so I decided to include double and triple capital due to death in an accident.
My current insurance plan to date is considering reducing the insured capital or perhaps dividing it between several insurance policies. The risk profile has changed and age causes the price of insurance to rise exponentially every year.
What is the capital that I must take out in life or disability insurance? Do not miss this post if you are thinking of subscribing to an eternal guarantee.
The same formula should be applied to savings insurance or pension plans. Your current investments will depend on whether you can maintain the economic level when retirement arrives.
But if your interest is short-term, you must necessarily check if it is convenient for you to invest to reduce the tax bill.
The daily insurance program goes beyond family insurance
Is your professional or business activity required to subscribe to some type of insurance?
In that case, review the last annual statement you made to the company of your business billing or the number of workers you employ. These are two concepts that according to the policy in question you have to regularize annually.
There is more insurance to review, but we will see that in another post, while I leave you with: How to reduce the insurance bill: 7 + 1 advice to pay less.
My check to keep insurance up to date is almost complete. After the modifications, I admit that I have not saved much, about 20 dollars. It’s only 1% of what I pay regularly per year on insurance. To this, I will have to add what I can reduce in life insurance.
A review of the payments to verify that they are up to date is the finishing touch to remain calm for another year.
I hope this guide helps you get your insurance up-to-date, and if you can’t spare a lot of time, seek help from your insurance broker.
Now you know what I review of my insurance contracts, it’s up to you to tell us how you do it!