When and Why You Should Review Your Insurance Policies Annually

Insurance isn’t something you should set and forget. Life changes—and so do your coverage needs. Whether you’re insured for your car, home, health, or life, it’s important to review your insurance policies at least once a year. Doing so can help you save money, avoid gaps in coverage, and make sure your insurance still aligns with your current lifestyle.

Here’s why an annual insurance check-up is more important than ever in 2025—and what to look for when reviewing your policies.


Why You Should Review Your Policies Every Year

1. Life Changes Happen

Major life events can significantly impact your insurance needs. These include:

  • Getting married or divorced
  • Having a child
  • Buying or selling a home
  • Starting a business
  • Retiring or changing jobs

Any of these changes can affect the type and amount of coverage you need. For example, if you’ve added a new driver to your household or upgraded your home, your current policy might be outdated.


2. Rates and Discounts Change

Insurance companies regularly update their pricing models. You may now qualify for new discounts or better rates based on:

  • Improved credit score
  • Safe driving record
  • Bundling multiple policies
  • Installing security or safety systems

Reviewing your policy gives you a chance to shop around and make sure you’re not overpaying.


3. Policy Terms May Have Changed

Insurance companies can adjust policy terms during renewal. This might include new exclusions, different deductibles, or adjusted coverage limits. Reading your renewal documents carefully ensures there are no unpleasant surprises down the road.


4. You Might Be Underinsured—or Overinsured

Your coverage needs evolve over time. If you’ve renovated your home, added new valuables, or experienced a health change, your existing policy might not fully protect you. On the flip side, you may be paying for coverage you no longer need.


5. Keep Beneficiaries and Contact Info Updated

For life and health insurance, it’s crucial to keep beneficiaries, addresses, and emergency contact information current. A quick annual review helps avoid administrative delays if a claim is ever filed.


When to Review Your Insurance

The best time to review your policies is:

  • Once a year—ideally one month before renewal
  • After any major life event
  • Before switching insurers or adjusting deductibles
  • At the start of the calendar or fiscal year for budgeting purposes

Make it a habit—just like scheduling a health check-up or filing taxes.


How to Review Your Policies

  • Read the full policy summary and declaration page
  • Compare current coverage to your needs
  • Get updated quotes from other providers
  • Ask your agent about discounts or updates
  • Document any changes for your records

Final Thoughts

An annual insurance review isn’t just good practice—it’s smart financial planning. Taking 30 minutes once a year can help you stay properly protected, avoid costly gaps, and possibly save hundreds of dollars.

In 2025, being proactive with your insurance ensures peace of mind and keeps you in control of your coverage and costs.