Why You Should Always Keep Your Insurance Agent in the Loop

Why You Should Always Keep Your Insurance Agent in the Loop

September 20, 2023

Insurance is a critical part of protecting your assets and ensuring financial security. However, simply having insurance isn't enough. To get the most out of your coverage, you must maintain open and honest communication with your insurance agent. Your agent needs accurate and up-to-date information to tailor your policies to your needs and make sure you're adequately covered. Here are some crucial details you should always share with your insurance agent and why it's essential to keep them updated.

  1. You Paid Off Your Car or Home: When you've paid off your car loan or mortgage, it's a significant financial milestone. However, failing to inform your insurance agent about this could result in overpaying for coverage. Your policy might still include clauses or coverage that were necessary when you had a loan, but now they are irrelevant.

  2. You Sold Your Car or Home: Selling a car or home is a big change in your assets and liabilities. Not updating your insurance can lead to problems like paying for coverage on a vehicle you no longer own or leaving your old home uninsured, which could lead to financial loss if an incident occurs.

  3. Update Your Payment Information: Your payment method can change over time. Whether you switch bank accounts, credit cards, or other payment methods, it's crucial to update this information with your insurance agent to ensure your coverage doesn't lapse.

  4. Completed Home Updates: If you've invested in home improvements like a new roof or upgraded AC/Heat unit, it's important to let your insurance agent know. These enhancements can often qualify you for discounts or better coverage terms, potentially saving you money.

  5. You Moved: Insurance policies are location-specific. When you move to a new address, you must update your policy to reflect the new location. Failing to do so could result in gaps in coverage or even policy cancellation.

  6. Big Purchases and New Toys: Whenever you make significant purchases, such as an RV, boat, jet ski, or car, it's vital to inform your insurance agent. These items require separate coverage, and your agent can help you get the right policies to protect your investments.

  7. Purchases in Different Entities: If you're buying big-ticket items through a different entity like an LLC, your insurance agent must be aware of this. The type of ownership can affect your insurance requirements, so it's crucial to discuss this with your agent to ensure proper coverage.

  8. All Drivers in Your Household: Every licensed driver living in your household should be listed on your insurance policy, including teenagers. If an unlisted driver is involved in an accident, it could jeopardize your coverage and result in denied claims.

  9. Major life events or changes: Your financial responsibilities and beneficiaries of your life insurance policy many change due to a change in marital status or a birth of a child. Discuss these updates with your agent to ensure you have enough coverage.

We are here to help you navigate the complexities of insurance and ensure you have coverage in place. To make our job effective, you must communicate important life changes and updates promptly. Failing to do so could result in inadequate coverage, unexpected expenses, or even the denial of claims. We do not want to let that happen! Keep us informed and allow us to protect your financial well-being.