I hope you’re having as much fun with this “New Year, New You” 30-Day Challenge as I am. We’re almost at the tail end!

Today’s challenge (and tomorrow’s, too!) is to audit your insurance coverage.

“Oh, come on!” you say.

“What’s the point? I’ve got coverage! Why should I go through all the hassle of auditing what I am already paying for?”

First off, well done for actually having insurance coverage! 

Now ask yourself: when’s the last time you really looked at your insurance policies? 

Got a quote from another company to seek better terms and rates?

As you go through life, your needs will evolve, and so should your insurance. It’s in your best interests to keep it updated. 

You could be paying for something out of pocket that you don’t need to – and you should have a good handle on your coverage now so that you don’t have to go through the stress of figuring it all out at the last minute when the stuff really hits the fan.

After all, the really expensive stuff – like car accidents, illness, and disability – does not happen on our schedules. And they can be absolutely devastating to your retirement plans. 

Here’s a good rule of thumb to follow: only insure what you need to insure. 

That’s anything that you can’t easily replace on your own and anything that would set you back financially if the worst happens. 

Since there are several types of insurance, let’s go through the most common and what you need to consider for each type. 

I’ll cover some today and the rest in my next email. 

Car Insurance. Liability insurance is required by law if you drive – and most of us can’t afford to fork over $300,000 if we get sued for injuring someone when we’re behind the wheel. If you drive less than 10,000 miles a year you might be entitled to a low-mileage discount. 

Lastly, look into your collision and comprehensive deductible – is it appropriate or even necessary? If you can handle the out-of-pocket expense, you can significantly reduce your monthly payment. 

Health / Vision / Dental Insurance. Just a week of intensive care can bankrupt all but the wealthiest of us in the U.S., so some form of emergency health insurance is essential. Butonsider your expected insurance use. 

You probably don’t need the premium Gold plan with all the bells and whistles if you’re young and healthy. 

As you go through your coverage – the real question you need to answer is this: are you overinsured or underinsured?

You might find it easier to go through this with a professional, like a financial advisor – because it can get tricky to know what you actually need. 

If you’d like to talk about it, all you have to do is call 513-563-PLAN (7526) or grab 15 minutes in my calendar here.