How to review your insurance policy

Just as you have to keep an eye on your monthly expenditure to keep abreast with the increasing cost of living, it’s wise to periodically review your insurance policy to ensure you make the most of your cover – and perhaps carve out savings, where possible.

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Even if you pride yourself on knowing where every cent of your salary goes, revisiting your recurring bills could highlight forgotten payments that you could optimise to save money. Many people set up their insurance debit orders and forget about them, not realising that their needs and coverage requirements may change. Budget Insurance offers this guide to ensuring that your policy delivers what you pay for.

What is an insurance policy review?

An insurance policy review involves scheduling a meeting with a professional advisor who will assess if your needs and circumstances have changed since you first took out the policy. They can then help you identify possible coverage gaps, determine if you need to increase/decrease policy limits and see if there is any way you can save money (such as by increasing your excess or offering you insurance bundling).

Why it’s wise to review your insurance policy

Short-term insurance is a useful tool for managing life’s unexpected setbacks without disrupting your journey towards meeting your financial goals. You would probably prefer not to have to use it – but certainly appreciate what it can do for you when needed and the peace of mind it affords us. That’s why many people “set and forget” short-term insurance after taking it out, only paying attention to it when they need to make a claim, want to look for another insurer or decide to cancel insurance altogether.

By conducting a thorough review, you will not only gain a detailed understanding of your policy (see also: Car Insurance Guide: Everything You Need to Know), but it will enable you to reassess the quality and relevance of your coverage. By identifying any gaps in protection and adjusting your policy accordingly, you can ensure financial security for your investments and potentially save money at the same time.

Get started with a review of your insurance policy

Reviewing your insurance policy may seem like a daunting task, but it doesn’t need to be. By breaking it down into small steps, you can make the process simpler and more effective. You can ensure that your insurance policy is in line with your current needs and circumstances by following these 6 key steps:

1. Assess your coverage needs

Have there been any recent changes to your lifestyle? For example, you’ve recently purchased a new house, married, or started your own business. These events could significantly impact your insurance coverage requirements, making it crucial that your policy adequately safeguards your evolving lifestyle.

2. Review insurance: the diverse types of cover

Take the time to understand the different types of coverage your policy offers and consider whether each type matches your requirements. For example, if you’ve acquired a new home, it’s important to assess your building– and, if you’ve bought new furniture and appliances for it, home contents coverage.

3. Identify policy exclusions and coverage limits

Be aware of any exclusions and limits on your policy, as these can affect the level of protection. Using the new home example above, understanding the coverage limits will ensure that you have adequate security for any valuable property assets. See also: Is your car insured against unexpected risks?

4. Check for discounts, savings, and benefits

Insurance policies often come with discounts, savings, and benefits you might not be aware of or fully utilise. Speak to your provider about available discounts, bundling options, or loyalty rewards. These opportunities could lead to considerable savings.

5. Seek advice from an insurance professional

Seeking expert advice from a professional advisor will help tailor your policy to your unique, individual preferences. They will thoroughly review everything with you, ensuring nothing is overlooked.

6. Make any essential adjustments

Now that you have conducted the review, use the insights to make any essential adjustments to your policy. This may involve, for example, updating coverage amounts, adding endorsements, or making changes to your beneficiaries. By following these steps, you can make informed decisions about your insurance policy so that it continues to provide you with the optimal level of coverage.

Tips for getting the most out of your insurance policy

As the year progresses, it’s a good idea to optimise and take advantage of your car and/or household insurance policy. Here are some valuable tips to ensure you get the most out of your coverage:

Consider bundling policies: This involves combining multiple insurance policies from a single provider. Examples of typical bundle policies include Home and Vehicle Insurance. By consolidating your coverage this way, it not only streamlines your policies but can also result in cost savings.

Update your personal information: It’s important to keep your information up to date so that it remains aligned with your current circumstances. Making updates, such as advising of recent home renovations or moving to a safer neighbourhood, could lower your risk profile and potentially reduce premiums. By ensuring your information is as accurate as possible, you will maintain in-depth coverage and seize any opportunities to save money based on changes to your lifestyle.

Maintain a healthy credit score: Insurers often use credit information to assess an applicant’s risk profile, with higher scores correlating to lower premiums. To maintain a good credit score, pay all bills on time, reduce any outstanding debts, and regularly monitor your credit report for errors.

Disclaimer: The information in this article is provided for informational purposes only and should not be construed as financial, legal, or medical advice.

Get a quote from Budget Insurance

If you want to learn more about car insurance or review your car insurance requirements with the help of experts, Budget Insurance‘s team is always ready to assist. Contact them on 086 1600 120 or leave your details and they’ll call you back at no expense to you! You can also request an online quote.