If you want to get your financial ducks in a row this 2023, you can start by getting insurance coverage for your needs. That way, you and your loved ones are protected financially from whatever setbacks the year may bring. However, it’s just as crucial to get affordable insurance. That way, you’re not overpaying and can still save up.
To help you get off on the right foot, here are the top five insurance moves you should make in 2023. It’s essential to have all your bases covered, so here are tips for car, life, travel, and even pet insurance.
Find a Way to Lower Your Car Insurance Rate
If you bought a car over the past year, you’re probably still reeling from the expenses. It’s more costly than ever to own a car these days, so the last thing you want is to overpay for auto insurance. Staying with the same provider won’t automatically land you low rates, so it’s worth shopping around and looking for the best deals. It’s best to get quotes from at least three companies and compare them.
You can also look into alternative types of auto insurance if you want to save. If you don’t use your car too often, you can opt for pay-per-mile insurance. That way, you only have to pay for the distance you cover. If you’re careful behind the wheel, you can try usage-based insurance. You can shave as much as 40% off your bill when you show excellent driving skills and safe habits.
Another way to save on auto insurance costs is to lower your coverage. For example, you can forego collision or comprehensive coverage if you drive an older car. However, you must be careful with this strategy. Leaving gaps in your coverage means that you have to pay out of pocket when an accident occurs.
For those just about to purchase a car, consider buying a model that’s cheap to insure. You can typically land lower rates with a Mazda, Volkswagen, Jeep, or Subaru car, given you have good credit and a clean driving record.
Purchase Term Life Insurance for Peace of Mind
Some people put off getting life insurance because it forces them to think about their mortality. But it can give you peace of mind knowing you can protect and provide for your loved ones even when you’re not with them anymore. You should have life insurance if you’re the breadwinner of your family or if you have outstanding debt to pay off.
Life insurance becomes more expensive the older you get. So if you don’t have one yet, 2023 is the best time to change that. But because of soaring living costs due to inflation, you mustn’t overpay for your life insurance. That’s where term life insurance comes in.
Unlike whole life insurance, which provides coverage for a lifetime, term life insurance is only valid for a limited time. If the coverage period is 30 years and the policyholder dies within that time, the insurance company will provide a death benefit. But if they die after 30 years, there will be no payout. Term life insurance is significantly more affordable, requiring very low premiums, especially for younger people.
Bolster Your Home Insurance Coverage
Floods are the most prevalent natural disaster in the country, putting many homes at risk of destruction. And yet only 15% of households are estimated to have flood insurance, forgetting that standard home insurance policies don’t usually cover it. Going without flood insurance can be very costly and devastating, so it’s time to purchase one this 2023. You can get coverage from the National Flood Insurance Program (NFIP) or find a private provider.
It’s also wise to purchase home insurance with an extended replacement cost. That way, you’re protected from financial devastation when the cost of rebuilding a damaged home exceeds the insurance coverage. For example, a tornado that sweeps through an entire neighborhood can cause a massive increase in construction costs. But when you have an extended replacement cost, your provider will increase your insurance limit to absorb the spike.
To keep your home insurance rate as low as possible, remember to update your provider on changes you make to your property. Installing an alarm system or removing the pool in your backyard can lead to lower premiums.
Consider Buying Travel Insurance If You Have Trips Planned
It looks like 2023 will be the year of revenge travel, with COVID-19 restrictions easing up globally. But that doesn’t mean you can put all your worries aside. It can still be wise to protect yourself financially with travel insurance if you have trips lined up, whether domestic or international. Depending on your policy, you can save a great deal of money when faced with travel issues.
Standard travel insurance policies cover the usual perils, such as medical emergencies, trip cancellations, interruptions, and lost luggage. You can also opt for a policy that covers you for all cancellation reasons, refunding you 50% to 70% of the amount you spent on airfare. But before buying travel insurance, check if you don’t already have protection. Some credit cards provide ample travel insurance coverage, among other benefits.
Invest in Pet Insurance
Pets can be terrific additions to the family. But it can take a toll on your bank account when they get sick and need medical care, especially now that vet fees are at an all-time high. Fortunately, pet insurance can help ease the financial burden of vet bills. Similar to regular health insurance, pet insurance can partially cover the cost of treatment for animal injuries and illnesses. Some policies even provide coverage for vaccines, prescription food, checkups, and other medical expenses.
The Bottom Line
As you define your financial goals for the year, don’t forget to assess your insurance needs. With the right coverage, you can protect yourself from any unexpected expenses 2023 might throw at you.