Written By: Yusuf Begg
If you’ve ever taken out insurance before, whether in the past or present, then it’s important to review all your policies. This is because your circumstances change, which could result in you being left underinsured or paying for insurance you longer need. In actual fact, insurance brokers actually urge their customers to review their policies
once in a while to ensure all information is up to date. We all know that contacting our insurance agent usually results in an elaborate pitch to purchase more insurance. And, although this can be annoying - it isn’t necessarily a bad thing.
Here are a few reasons to review your insurance policies regularly:
You may identify mistakes
Most South Africans actually have a few insurance policies – auto insurance, life insurance, health insurance, homeowners insurance, and even gadget insurance. It’s good to occasionally review these policies as they may have one, three or even five mistakes that could be forcing you to pay higher premiums than you should be.
You may get a better rate
By regularly reviewing and comparing your insurance policies
, you may in fact lower your premiums. Homeowner’s insurance premiums, for example, can frequently change due to the crime rate in your area.
You’ve increased your assets
If you’ve had insurance for a while now, then you’ve also probably collected quite a bit of stuff since you first signed the policy. Perhaps some of these newly acquired assets are very expensive. It’s a good idea to make a list of your newly acquired belongings and discuss these with your insurance agent. Sure, your rates are likely to go up, but if you’re ever robbed you’ll actually be covered for what you own.
You may want to bundle your policies
After reviewing your policies you may realize that you have four different policies with four different companies. Which in that case you might choose to bundle a few of these. Having your homeowners and car insurance
with the same carrier, for example. Bundling your policies together can get you discounts of at least 10 percent.
You may get a discount
Yes, insurance brokers have a tendency to try and sell you more insurance. But, at the same time, only once you review your policies with them will you know whether you’re due for some discounts or not. For instance, safety devices like burglar alarms, water leak detection systems, and automatic standby generators can earn you credits on your existing premiums. These credits can reduce your homeowners’ premium by 30 percent or more.
Your life has changed
Even the subtlest changes to your life can impact your insurance premiums
. If you purchased your life insurance soon after you were married, for example, and you’re currently on your third child then your policy is probably due for an upgrade.