3 Reasons Why You May Be Underinsured

When was the last time you reviewed your insurance policy with your agent? If the answer to that was, “Never,” it might be beneficial for you to read on...

1. With today’s rising costs of construction, automobile parts, and most of all, earning potential, it is vital that you take a look at your coverage, your towing benefits, and your yearly income. The cost of adjusting something as simple as your deductible, your liability limit or face amount of a life insurance policy is minimal, and it could mean the difference between financial stability or financial ruin.   Take a moment to pull these policies out that have been gathering dust in your drawer and give your agent a call and have them explain them to you, if necessary. 

2.  That car that you have sitting in your garage that doesn’t run.  You know the one...the one one you don’t carry insurance on, yes, THAT one. Did you know that you have no coverage for that vehicle in the event of a house fire? Did you also know that if you have gasoline in the tank, it acts as a fire accelerant, which could potentially make the fire burn out of control? It literally costs pennies to insure a vehicle with comprehensive coverage only. It’s worth it.

3. Take a good look at your deductibles and liability limits.  The best way to insure you home or auto is NOT by lowering your deductible. It’s by raising your liability limits and increasing your deductibles. When you lower your liability limits, you are exposing yourself to lawsuits. The insurance company is only liable for the limits of your liability. For example, if your liability limit is $25,000, that is all they are going to pay in the event of a claim. So that means if you get sued for $75,000, you have to come up with the additional $50,000 out of pocket! Most people assume if they have insurance, the company automatically takes care of these things. Not the case. In this litigious society, how important is it that you and your family are protected in case you make a mistake?

These are just a few things you might possibly want to discuss with your agent. Touching base with your agent in the event of a life/lifestyle change is extremely important. It only takes a phone call and can save you thousands at the time of loss, and could even save you money on your renewal premium. A good rule of thumb is to review once a year, even if your circumstances haven’t changed. Your agent can keep you abreast of changes in the industry, insurance law, and basic knowledge of your policy itself.

Have a great day!