3 Reasons to Get an Insurance Quote Every Year

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Getting annual insurance quotes can pay off big time. 

Key points

• Most people have multiple insurance policies.
• It’s smart to get new quotes for each policy every year.
• Getting annual quotes help ensure appropriate coverage at an affordable price.

Most people have multiple kinds of insurance. This can include home and auto coverage, among other types of protection. Regardless of how many different policies consumers have, it’s important not to be complacent about coverage. Instead of just sticking with the status quo, anyone with insurance should get annual policy quotes. 

While this may take some time and effort, there are three important reasons to always check on coverage options each year. Here’s what they are 

1. Your coverage needs may change

The amount and types of insurance people need doesn’t necessarily stay stable over time. Life changes can happen. For example, a person who gets married may need more life insurance. Someone who adds a pool to their home may require additional homeowners insurance. 

Not everyone makes changes to their policy right when a life change occurs, so an annual review of policies and comparison of options can help bring coverage gaps to light. 

2. You could potentially get cheaper premiums

Comparing insurance quotes often makes it possible to reduce premiums. That’s the case for several reasons. 

For one thing, the coverage that was once the cheapest in the past may not be the most affordable option any longer due to the policyholder’s life changes or because of new insurance offerings from other insurers. Companies may also change their pricing models, so insurers that were rejected as too expensive before may now offer the lowest cost. 

Saving money on insurance premiums without compromising coverage is always a good thing. While paying to shift the risk of loss to insurers is worth doing, overpaying for protection never makes sense for anyone. 

3. New insurance options may be available 

There are lots of different insurance companies out there, and some may introduce new types of coverage that provide better protection. New insurers also come onto the market, perhaps offering things that existing insurance companies do not. Without looking into options annually and exploring the types and costs of available coverage, consumers could end up missing out on policies that it would make sense for them to buy.

Now, comparing quotes does take a little bit of time, but there are plenty of good reasons to do it — especially since the internet has simplified the process of shopping for coverage so it’s possible to reap the benefits of an annual comparison with much less hassle. 

Of course, when a different insurer offers a better deal, this doesn’t always mean it makes sense to switch. It’s important to research other details about the new insurer such as its reputation for claims handling. And it’s worth asking current insurers if they can beat the low price its competitors are offering. They often will, allowing policyholders to avoid the hassle of actually switching coverage. 

But even those who don’t end up changing their insurance can benefit from taking the time to explore all of their options and confirm the coverage they have is the best for their needs. This process can help identify problems that it’s better to correct before disaster strikes and an insurance claim must be made.