Are You Underinsured? How To Make Your Insurance Work For You

Cars and homes – both of these have one thing in common. You need insurance for them! To be a responsible driver and homeowner, you need to insure yourself and your possessions.

When you take out an insurance policy on your home or car, you’re protecting the big investments in your life. Insurance exists for the sole purpose of protecting your biggest assets. Without it, you’re looking at sky-high bills and even legal issues for not carrying it.

Even if you have insurance coverage for all areas in life, you may still be wondering if you’re getting the best coverage available. Are you underinsured? Here’s why you might be, and what to do if you are:

Car Insurance

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The most important thing to understand about insurance is that not all of it is created equal. Just having any old car insurance policy doesn’t mean you’re automatically protected in the event of an accident. Drivers with bare minimum policies may be staying within the law by carrying insurance, but they can end up paying for poor coverage later.

Every state requires drivers to have injury and property liability insurance. This means that in the event of an accident, damage you cause to another person or their property is covered by your policy. But what about any injuries or damage you incur? Bare bones car insurance plans leave out comprehensive coverage that can protect you in the event of an accident not caused by another vehicle.

Even more, collision coverage isn’t always a required coverage level in all states. This protects all drivers involved in an accident, regardless of who caused the collision. Affordable car insurance doesn’t have to be cheap. You can get comprehensive coverage if you know what to look for.

Home Insurance

Home insurance is one of the most important ways you will protect yourself and your family. Your home is full of treasured possessions, regardless of whether they’re worth money or not. Losing the things that make a home to a natural disaster or theft is one of the scariest things homeowners face. Comprehensive insurance can help quell those fears.

Living with an under-insured home leaves you more vulnerable than you would think. Failing to plan for the worst, like having to rebuild parts of your home after a disaster, can leave you out of a place to live altogether. When your insurance won’t cover the real value of your home, you’re stuck with very few options.

A staggering number of homeowners are underinsured. In fact, as many as 2/3 of homeowners in America do not have sufficient home insurance coverage! Another 50% don’t even understand what their policy covers.

What can you do?

woman-making-a-call

Statistics about underinsured drivers and homeowners can be daunting. But instead of becoming another number in the lot, assess your coverage well before anything happens. If you wait until you’re involved in a car accident or your house suffers major damage from a storm, it will be too late to increase your coverage.

This is as easy as giving your insurance agent a call. Your agent should be happy to walk you through your levels of coverage and how much it might cost to add more. If your policy is viewable online, you can take a look before calling your agent. This will allow you have to questions and concerns ready before the call.

A better insurance policy won’t help heal any injuries from a car accident or replace losses from theft in your home, but it will ensure you get what you deserve. Don’t leave your life at risk by being uninsured any longer.