A new year means new beginnings, which makes it the ideal time of year to make and keep resolutions. One of those resolutions should be to revisit your insurance needs and make any necessary changes for the following year. Here are some of the most important reasons why a regular review with your insurance agent should be part of your financial plan.

Why You Should Review Your Insurance Needs For The New Year

1. Catch Mistakes

Going over your current policy with an experienced insurance agent gives you a chance to catch mistakes you might not have noticed the last time you examined your coverage. For instance, you may have forgotten to drop full coverage auto insurance after your vehicle depreciated to the point that it no longer made sense to have it. A new year review gives you a chance to double-check your policies.

2. Change Deductibles

Deductibles are the amount you must pay out-of-pocket toward a claim before your insurer starts to contribute. You may wish to raise or lower your deductibles for the coming year. The higher your deductible, the less risk the insurer bears and the lower your monthly premium will be. Conversely, with a lower deductible, you pay less out of pocket for a claim but more each month.

3. Adjust Your Home Insurance Limits

If you've made changes to your home or household over the past year, now is the time to adjust your insurance accordingly. For instance, if you've installed a pool or gotten a dog, you might wish to raise your liability insurance limits in response to the greater risks involved. Pools attract neighborhood kids who could be injured if swimming unsupervised, while a new dog could potentially bite the mail carrier. Similarly, if you've remodeled or installed an addition to your house, you may need to raise your coverage limits to accommodate the increase in your home’s value. 

4. Look For Cheaper Coverage

The new year is also the ideal time to switch providers if you can find a better rate or better coverage at no additional cost. Request quotes from multiple carriers to see who is offering what and for how much. Be sure to ask your insurance agent if you qualify for any discounts. For instance, if you've installed a fire alarm or security system in the past year, you may qualify for a security system discount on your home insurance.

To review your insurance needs for your New Year's resolution, contact Alcorn Insurance Agency in Chama, NM. They have been serving clients in and around Rio Arriba county since 1989, specializing in affordable auto, home, business, RV, and liability insurance. Visit their website to request a quote or call (575) 756-2197 to have an experienced insurance agent walk you through your options.