How to Manage Insurance Policies
Keeping up with your insurance policies can be a chore. As home, auto, life, disability and health insurance companies scramble in a crowded marketplace to hold and grow their business, they create new policy types, offer more discounts, and change marketing methods to attract new customers. By taking good care of your policies and reviewing coverage often, you may save money on your coverage while keeping the amount of insurance that best meets your needs.
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Instructions
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Store your insurance policies in a fire-proof safe or safe-deposit box. In 2010 a safe-deposit box costs between $30 and $70, and a 1 cubic-foot safe may cost around $150 at a hardware or home improvement store. Keeping your documents in a safe or safe-deposit box not only will store them in a safe place, but you'll know exactly where to look for them when you need to review your coverage.
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Explore consolidating policies through a single provider. Many insurance companies offer discounts if you have your home and car insurance through a single insurer. Ask your friends for names of providers they may recommend as well as popular insurance companies you recognize through advertisements. Auto valuation company Edmunds recommends asking body shops which insurance companies are easiest to deal with, because they work with insurance companies daily.
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Ask if you can pay premiums in a way that meets your needs. Insurance providers are often flexible about premium payments, as long as they're made annually. In fact, many insurers prefer you to pay larger sums less often and offer a discount for annual or semi-annual premiums. Regardless of frequency, line up your insurance expenses so you can easily make payments. Non-payment of insurance premiums is a reason for companies to cancel coverage.
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Ask about discounts you may be eligible for but aren't currently receiving. To manage your insurance policies well, talk to your agent or company representative whenever you have life changes. If you stop smoking, your life insurance and homeowners rates may lower. Teenage drivers leaving home may signal lower auto rates. You may get discounts for good grades in school, smoke alarms or security devices and senior citizen rates, among others.
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Review your policies at least annually to ensure that it's still needed insurance. For most people, life insurance replaces income and assets you don't yet have. Therefore, as you age and accumulate funds you'll need less life insurance. Cars age and become less valuable, allowing you to lower the insurance on them. Disability policies may need to be changed to reflect workplace policies. By staying on top of your policies, you'll manage them well.
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