It is a good idea to do an annual check on the retail value of your car. As for starters, your car depreciates in value every year, which means you could be over insured, so your insurance premium may be higher than it needs to be.
On the flip side, and this is where the nasty surprises can happen, you may be under insured. No one wants to find that out when they have to claim because it will be coming out of your own pocket. As you would have to cover part of the damage yourself, even if you have been diligently paying your insurance premiums every month rising inflation and the cost of insurance can leave many under insured.
And sometimes it is just too expensive to insure the items to their full replacement value, and while they won’t be able to replace the exact item, some sort of financial compensation for their loss is better than none at all. These insured clients under insure their goods in order to save a bit of money on their monthly insurance premiums.
The aim should be to purchase the right cover and the right price. As prices change all the time and so does the costs of replacing something destroyed, lost or stolen. Therefore be pro-active with your insurance and financial needs. Study the terms and conditions of your policy to gain an understanding of what your insurer regards as over insurance. Review your insurance annually and ask your broker or insurance company to ensure that property is not insured for more than its market value.
