Baltimore (WBFF) — As Americans settle into the new year, AAA is encouraging consumers to add one more item to their list of resolutions: reviewing their insurance coverage.
With life changes such as new jobs, moves, home renovations, or new drivers in the household, the organization says now is an ideal time to make sure insurance policies still reflect current needs.
“The start of a new year is the perfect moment to take a fresh look at your insurance,” says Dan Scroggins, Vice President, Personal Lines Insurance, AAA, via press release. “A lot can change in a year, and your policies should change right along with your life.”
AAA says changes in driving habits are one of the most common reasons auto insurances should be reviewed.
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With more people working from home or entering retirement, reduced mileage could qualify some drivers for lower rates.
Families should also update policies when teens gain driving privileges or students leave for college.
Drivers with older vehicles may also want to reassess whether collision or comprehensive coverage is still worth the cost.
AAA notes that taking a defensive driving course can improve safety and may lead to premium discounts.
For homeowners and renters, AAA recommends updating home inventories to reflect recent purchases or renovations. This can be done by listing valuables or recording a simple video walkthrough using a smartphone.
Renovations such as finished basements or updated bathrooms can increase a home’s replacement cost, which is what insurance coverage is based on — not the home’s market value.
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AAA also suggests reviewing life insurance policies annually.
Maintaining healthy habits and staying on top of routine medical care can help lower premiums, especially for younger applicants.
The organization advises policyholders to check beneficiary designations and ensure important documents are securely stored and shared with a trusted contact.
Consumers are also encouraged to look for potential gaps in coverage.
Standard homeowners’ insurance policies often do not include protection for issues such as water backup, service line failures, mold remediation, or flooding.
Flood insurance, which is sold separately, may be necessary even for homeowners outside high-risk flood zones.
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Umbrella insurance, which provides additional liability coverage beyond home and auto policies, is another option AAA says can offer added financial protection at a relatively low cost.
Travel and pet insurance are also worth considering, according to AAA.
Travel insurance can help cover cancellations and medical emergencies, while pet insurance may reduce out-of-pocket costs for veterinary care related to illness or injury.
“No one wants to think about worst-case scenarios, but taking an hour to review your insurance at the start of the year can make a huge difference,” Scroggins said, via press release. “It helps ensure you’re protected and that you’re not overpaying for coverage you don’t need.”
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