This 5-Step Annual Insurance Audit Can Save You Thousands Of Dollars
Car insurance costs are rising, forcing drivers to search for ways to save money in already tight budgets. According to a Bankrate report, the average annual premium of full coverage auto insurance rose 26% from last year to $2,543 in 2024.
Insurance is simply a way to manage your financial risks. When you purchase a policy, you are essentially purchasing protection against potential financial losses.
The insurance company pays you or someone you choose if something bad happens. And if you have no insurance when an accident happens, you may be responsible for all related costs. This annual insurance “audit” habit, broken down into five easy steps, can save you thousands of dollars each spring.
1. ‘A’ Is For Assembling Your Documentation
Assemble your insurance policies and documents every year. Schedule around four hours to gather all your insurance papers, from the booklets to the receipts, in a safe spot.
Normally, I’m all about digital, but reviewing policies in paper form makes it easier for me to read, highlight and underline. I keep them in a safe along with other important documents. So, when you have a stressful situation that requires filing a claim, you don’t have to rummage around or remember your username and password to find out what your insurance covers.
2. ‘U’ Is For Understanding Your Coverage
To understand your insurance coverage and costs, you don’t need to become an expert. However, it’s important to actually read the fine print and review all of the coverage limits. And you must review the actual costs and the parameters you are paying for — specifically the premiums, the deductibles and the overall policy costs.
As a financial coach, one of the biggest