Insurance premiums are on the rise for many Americans already battling higher costs due to inflation.
Roughly 70% of people are actively reviewing their insurance policies with a goal of saving money, according to a recent survey by Trusted Choice, which represents members of the Independent Insurance Agents & Brokers of America.
FOX Business asked experts about why January is an ideal time to look over insurance plans and policies in search of savings.
The first month of the year is often considered a prime month to review insurance policies.
EXISTING HOME SALES SLIDE TO LOWEST SINCE 1995
"First, it marks the beginning of a new year, making it a convenient time to assess your financial and personal situation," said Matt Simon, a Trusted Choice independent agent, Trusted Choice board member and president of CoverLink Insurance in Columbus, Ohio.
"You may have experienced changes in your life or finances over the past year that could impact your insurance needs." Also, many insurance policies renew annually, so January is an excellent time to ensure that coverage still aligns with current needs and circumstances, he said.
A third reason, said Simon, is many people are preparing or reviewing their annual budget, and the cost of insurance is often a significant expense, making January an ideal time to not only review the cost, but ensure coverage is adequate.
"External factors like natural disasters or supply chain issues can affect insurance policies in various ways," Nancy Germond, executive director, risk management and education, at Independent Insurance Agents and Brokers of America, based in Alexandria, Virginia, told FOX Business.
"For instance, if you live in an area prone to hurricanes or wildfires, your property insurance may see increased premiums or deductibles," Germond said.
And with weather changes, flood insurance has become a major issue, she said.
"The standard homeowner’s policy does not cover flooding," she noted.
EXTREME COLD CRASHES TESLA CHARGING STATIONS
If you live in a flood-prone area, it is imperative to have flood insurance, Loretta L. Worters, spokesperson with the Insurance Information Institute, stressed.
"Homeowners insurance does not cover flooding, and you can get flood insurance through the federal government’s National Flood Insurance Program and also from private insurers," she said.
Bundling multiple insurance policies, such as auto and home insurance, can often lead to cost savings through discounts offered by insurers, said Coverlink's Simon.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
However, he cautioned, it’s essential to review the individual policies within the bundle to ensure they meet your needs and offer competitive pricing.
"It’s not always advised in every situation, so it’s crucial to assess the specifics of your insurance requirements," Simon added.
