Insuring a Happy New Year

At the start of a new year, many of us think about changes we would like to make in our lives. Along with spending more time with family and friends, losing weight, and quitting smoking, improving financial health ranks among the most popular New Year's resolutions.

Part of taking care of your finances is making sure you have proper insurance protection in place. What better time than the beginning of a new year to sit down and talk with your insurance agent? It's a smart move that will help protect your family's financial well being should the unexpected occur. Here are some important insurance coverages to review on a yearly basis:

Auto

One question to consider when reviewing your auto insurance is whether your liability limits are sufficient. According to the Insurance Information Institute (III), if you only carry the minimum amount of liability insurance required by your state, there's a good chance that an accident cost will exceed that amount. The III recommends carrying limits of $100,000 of bodily injury protection per person and $300,000 per accident. Your insurance agent will not only help you secure the recommended amount of coverage, but can also identify ways that you might be able to save money on premiums.

Home

If the value of your home has appreciated significantly, your homeowners insurance may no longer provide adequate coverage. An agent will help ensure that you have sufficient coverage to replace your home should a disaster strike. Whether you own or rent, you also want to carry enough insurance to replace your belongings. You may need to purchase supplemental coverage for valuables such as jewelry, fine art, or collectibles. Be sure to keep a home inventory and save receipts for expensive items in case you ever need proof of ownership for a claim.

Life

Maybe there were significant changes in your life this past year, like getting married or having a new baby. Or perhaps you have been meaning to buy more life insurance for some time and have just put it off. Don't wait any longer. Life insurance becomes more expensive as you get older and, if your health deteriorates, you may no longer qualify to increase or purchase new coverage.

The worst time to find out that you're under-insured is after a loss occurs. Start out this New Year by talking with your insurance agent, and enjoy peace of mind for the rest of the year knowing that you are protected.

For additional information on our insurance products click on AAA.com, call (866) 209-8442 or visit your local AAA office.