Be sure your insurance keeps up with life's changes.
Kids or no kids, empty-nesters, modern families, single or married, new home, new car, planning for college, or retiring, today's households vary in complicated ways. We all deal with questions about insurance. As your life changes, work with your insurance professional to make sure your insurance coverage is appropriate for your needs.
New Car: Vermont requires drivers to purchase and maintain automobile insurance coverage. When shopping for auto insurance, premium quotations are a useful tool for comparison of different companies’ products. Auto insurance can be divided into two basic coverage areas: liability and physical damage. Two factors determine what you pay for auto insurance: (1) underwriting, which is when an insurance company assesses your individual level risk based on a variety of factors; and (2) rating, which is when an insurer assigns a price for coverage based on what it believes it will cost to assume financial responsibility for your potential claims.
New Baby: Whatever the path of bringing a child into your home, proper planning can help ease the transition. For expectant couples, review your health plans, pay attention to coverage limits related to pre-natal and neo-natal screenings, emergency delivery procedures, and extended in-hospital pediatric care. Be aware that most health plans have a deadline for registering your newborn. And if you’re considering adopting or becoming a stepparent, consult your current health insurance provider about adding a child to your coverage before you accept legal guardianship.
Job Change: Before accepting a new job, compare your current health plan with plans offered by your new employer to assure the available mix of deductibles, co-pays and coinsurance will cost-effectively meet your needs. Find out if your employer has a mandatory waiting period before health insurance coverage takes effect. If so, consider a short-term plan through Vermont’s health insurance exchange to cover the gap. See if your current group life insurance plan has a conversion privilege.
New Home: Home insurance is important for both homeowners and renters. Homeowners need to purchase insurance to protect their homes and personal property. Renters also need insurance to protect the contents of their rental unit. Everyone needs protection against liability for accidents that injure other people or damage their property. [Whether you live in an area prone to winter storms, wildfires, or flooding – now is the time to properly insure your home and possessions. Also consider purchasing flood insurance as homeowner’s policies do not cover for any damages caused by flood.
Getting Married: If you have just married or will soon, you are likely facing some complex insurance decisions. Getting smart about the insurance implications of combining lives and households can help you secure "happily ever after," and perhaps even save money. To avoid misunderstandings, it is important for couples to have a pre-wedding discussion to address topics such as auto, home, health, and life insurance.
Seniors and Grandparents: As you grow older, you should review your insurance coverage and eligibility for discounts. For example, discounts may be available if you limit the amount of driving you do. As your children leave home, you can also remove them from your policy. Consider taking a senior driving refresher course, such as AARP’s 55Alive or a program run by the National Institute of Highway Safety or AAA. If you are driving an older vehicle not worth much in current book value, consider dropping collision insurance.
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