The New Year has begun, and it's time to take a look at your finances to make sure everything's in order. One key issue that many people neglect is whether they have the insurance coverage they need at a price they can afford.
In the following video, Dan Caplinger, The Motley Fool's director of investment planning, looks at how you can do your own checkup on your insurance coverage. Dan gives two matching rules that sum up what you should look for: make sure you have the coverage you need, but also make sure you need the coverage you have. Dan looks at various situations that warrant adjusting your insurance coverage, including changes in family status and changing needs with respect to your property. He also talks about two ways you can cut insurance costs, using the competition between Berkshire Hathaway's Geico unit, Allstate , and Progressive as an example of how you can often get better rates just by shopping around. Dan concludes by sharing tips about raising your deductible to cut your premiums, assuring you that you can figure out your insurance needs just by spending a bit of time looking into the coverage you have.
Protecting your assets is one element of financial security
You need to have insurance to protect your assets, but you also need to have assets to protect. Smart investing is the way to ensure you have something to insure. In our brand-new special report, "Your Essential Guide to Start Investing Today," The Motley Fool's personal finance experts show you why investing is so important and what you need to do to get started. Click here to get your copy today -- it's absolutely free.
The article 2014 Insurance Checkup: How to Do It Yourself originally appeared on Fool.com.Fool contributor Dan Caplinger owns shares of Berkshire Hathaway. The Motley Fool recommends Berkshire Hathaway and Progressive and owns shares of Berkshire Hathaway. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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