When Should I Review My Personal Insurance?

Let’s be frank – insurance isn’t something you typically wake up thinking about. I suspect you’re more worried about getting the kids off to school, about traffic, or thinking about what tasks you need to complete at work that day. And while insurance doesn’t need to be on the top of your mind (that’s why we’re here), it should be a topic of discussion at certain intervals. So, when should I review my personal insurance?

After a Major Life Event

Not everything qualifies as a “major life event.” If we allowed our teenagers to make this determination, a major life event would occur every few days when he or she took a text message out of context. But, some events should trigger an insurance review, including:

  • Marriage

  • Divorce

  • A new teenage driver (uh-oh!)

  • The birth of a child (or the birth of your fifth child!)

  • The loss of a loved one

Consider the following:

  1. A young couple gets married and moves in together. At that point, their auto insurance should be consolidated with one carrier.

  2. After college, you move out of the house and obtain – for the first time – your own insurance. Simply mimicking your parents’ insurance coverages is not always the best practice (I recently experienced this firsthand).

  3. When you have your first baby, congratulations! But if you bring a child into the world and don’t have life insurance, shame on you. You’re doing your family a disservice


At the Time of a New Purchase

Buying a new home, a new car, or a new toy is super fun. But it also brings a new level of responsibility, and you need insurance ASAP! While you’re doing so, you should review all of your insurance policies to ensure you are properly covered on all fronts at a cost-effective price point.

Moreover, if you have an umbrella policy (and you should have an umbrella policy), you’ll need to make sure your new purchase is covered under your umbrella policy. Consider a couple of other scenarios:

  1. You’ve bought a new home. Is it insured properly? Imagine if the home were destroyed by a fire or tornado. Obviously, you would want to rebuild your dream home. Is there enough coverage on the home to rebuild it to your standards? Have you remodeled the home, and forgotten to increase the coverage to account for your beautiful new kitchen? These “gaps” in your coverage can be catastrophic.

  2. Speaking of remodeling, did you take out a home equity line of credit to finance the purchase? If you were to suddenly and unexpectedly pass away, would your life insurance policy cover all of your debt and leave your family in a position of financial stability? If not, you need to reexamine your life insurance policy.


On an Annual Basis

Your insurance is not simply a debit from your bank account each month. Rather, your insurance policies are part of a specifically tailored risk management plan provided to you by your agent. Most agents don’t do this. Your agent is likely simply an order-taker spitting out a price for your home and cars.

At The American Insurance Group, we believe your risk should be managed differently. One size doesn’t actually fit all. Your insurance needs should be tailored to you and your family according to your income, your lifestyle, your possessions, and your dreams and aspirations. Reviewing your insurance annually is a great practice, so you always know that you are paying for everything you need, while not paying for anything you don’t.

At our agency, our main goal is not to save you money, but to protect you and your family from catastrophic loss. Your family and your assets must be well-protected against anything that may or may not happen in life. If you are well covered with your current agency, we’ll tell you! But if we find an opportunity to add necessary coverages and/or lighten the load on your wallet, we welcome that opportunity.

If you are an existing client of The American Insurance Group, rest assured you are well taken care of. In fact, we just recently revamped our renewal process, whereby every personal lines client receives a check-in phone call from one of our Account Managers prior to renewal each year to make sure you are properly covered. You don’t need to wake up each morning worrying about your insurance; instead, let The American Insurance Group do it for you.


Jack Smith is an Account Executive at The American Insurance Group, a locally-owned, independent insurance agency in downtown Chattanooga. The Agency provides risk-management solutions for both businesses and individuals. You may find more information about us at www.theamericaninsurancegroup.com. Please contact us via email at sales@insurancegroup.us or via telephone at (423) 362-4166.