New Years Resolutions Can Affect Your Insurance Policy

People make New Year’s resolutions about everything, from their professional lives to their personal fitness. Why not start 2020 off right by resolving to take steps that will positively impact your insurance policies? There are so many things you can do this year to make sure you are getting as much value as possible out of your insurance cover—and also to minimize how much you are actually paying for said coverage. Here are a few ideas for resolutions that can send you off on the right foot.

Take control of your finances: This resolution is a good one for just about anyone, regardless of their insurance bills. Taking control of your finances is arguably the first and biggest step to taking control of your life as a whole. Tracking your expenses, figuring out how much money you have in savings, and paying attention to what’s coming in and what’s going out are all things that can help you be more strategic with money. In regards to insurance, these steps are key to knowing what you can afford in terms of deductible, for instance, which can in turn save you from a nasty surprise if or when you need to make a claim.

Quit smoking: Are you a smoker? If so, 2020 is a good time to think about not only how cigarettes are impacting your health, but also at how they are spiking your insurance rates. Smoking can impact premiums for health insurance, life insurance, and homeowner’s insurance. If you smoke, kicking the habit in 2020 is the biggest thing you can do to slash your insurance spending.

Take inventory of your contents: When was the last time you took stock of your belongings? Your home insurance policy includes coverage for contents, but would it be enough to cover the replacement of those items in the event of a fire or some other total-loss catastrophe? Especially if you’ve recently purchased high-value items—say, a wedding ring or a pricey piece of art—then you should contact your insurance agent about adding extra coverage. Those high-value items will typically require a policyholder to have a special rider on top of the policy, which covers those items specifically.

Buy travel insurance for your winter vacation: Are you planning a big vacation this winter? If so, consider purchasing travel insurance for the trip. What happens if the place you are traveling to is in the midst of a disaster such as flooding or wildfires, and you need to cancel your trip? What if you can’t go because you get injured or fall ill? What if you lose a bag or miss a key airline connection? Anything can happen with a trip, and travel insurance can reimburse you for those losses.

Some people think of insurance as a necessary evil: a form of ‘throwing money away’ on a just-in-case protection. By following through on the above resolutions, though, you can be more strategic with your coverage, reduce your insurance premium spending, and make sure you have the coverage you will need in the event of an emergency.