NAIC, TDCI Share Tips for Policy Holders on National Insurance Awareness DayConsumers Encouraged to Conduct Annual Review of Insurance Policies
NASHVILLE – In honor of National Insurance Awareness Day (Thursday, June 28), the Tennessee Department of Commerce and Insurance (TDCI) is reminding Tennesseans to conduct an annual review of their life, home, and automobile insurance policies to ensure their coverages fit their current needs.
“A lot can change in a year, so conducting an annual assessment of your insurance coverages is a great way for consumers to assess if they have enough coverage or not,” said National Association of Insurance Commissioners (NAIC) President and TDCI Commissioner Julie Mix McPeak. “If consumers have questions about their policies or their coverage, they should always feel free to contact our team to get more information in order to help them make informed choices.”
To help consumers review their insurance needs, TDCI shares the following tips:
- Some insurance companies charge different rates for the same coverage. Shop around to ensure the best coverage for your needs at the best price.
- Conduct an annual inventory of your home’s content. Take pictures and video of your contents, and update the list when you buy new items. Store the inventory list, pictures, and videos in a secure place like a safe deposit box, a relative’s house, or online.
- Ensure your dwelling coverage has not dropped below the cost to replace your home.
- If you rent, never assume your landlord’s insurance policy covers your belongings. More often than not, you will have to acquire renters insurance to protect your belongings.
- Determine if your current coverage is best for your vehicle and finances.
- Regularly review your policy to make sure the basis for your premium is as accurate as possible. Several things can affect your premium like adding/removing a vehicle or a teen driver graduating high school or reaching age 18.
- While raising deductibles can lower premiums, it can also mean you’ll owe more if you have an accident. Evaluate deductibles to determine whether you can afford to absorb your portion of a loss in the event of an accident.
- Ensure each vehicle is equipped with proper and valid proof of coverage.
- While reevaluating your coverage, check to see if new products such as usage-based insurance (UBI) may be a good fit for your family. With UBI, the auto insurer monitors your driving behavior and uses that information to determine your rates. NAIC’s DriveCheck tool helps consumers determine if they could benefit from UBI.
- Life changes, like the birth of a child or an income variation, justify a policy review. Conducting an annual review of your coverages ensure they match your current needs.
- There are several types of life insurance. Talk with your agent to ensure your policy is the best fit for your life stage.
- Ensure life insurance documentation is stored in a secure location and that close family members are familiar with the policy and coverages.
- Are you one of the thousands of Tennesseans who drive for a ridesharing company, also known as a Transportation Networking Company? Or do you rent your home through a home sharing company? Be sure to talk to your agent/company about benefits and exclusions to ensure you are protected.
- Additionally, NAIC offers a free life insurance policy and annuity contract locator service for those who are handling the affairs of a deceased family member. This service aids family members in finding lost or forgotten-about life insurance policies for a loved one who has passed away. Last year, nearly $3 million in life insurance benefits was returned to Tennesseans through this service.