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3 insurance policies you should consider increasing now

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An insurance policy needs to adequately protect both you and your beneficiaries. So the right amount is critical. Getty Images

A new year marks an opportunity for reevaluation. For many Americans, part of that review involves taking a closer look at their finances and investments. This can include insurance policies for opportunities to save as well as places where it may be worth boosting coverage protections. 

The value of most insurance types, after all, is tied to both cost and coverage. The key is to find the right balance between the two. With that being said, an insurance policy needs to adequately protect both you and your beneficiaries. So the right amount is critical. While some insurance is better than none, it's important to secure the appropriate amount.

3 insurance types to increase now

Here are three insurance policies you may think about increasing.

Life insurance

Life insurance protects you and your loved ones by providing your beneficiaries with a lump sum of money in the event of your death. Depending on the type, you may also be able to access a cash portion of your policy while alive. This can be used to pay down debt, medical expenses or other things. Just understand that this benefit is tied to whole life insurance policies, so you may need to change your insurance type if you want to take advantage of the cash factor.

Why you should consider increasing it: Did you have any milestone events recently? Did you get married? Buy a home? Have children? If you took out significant debt or have since grown your family, you'll want to increase your life insurance protections. If someone who wasn't previously depending on you financially is depending on you now, you'll want a commensurate amount of coverage. Ditto for any new expenses (like a mortgage payment) that you could end up burdening someone else with should you die before the loan term ends.

Start by getting a free online price quote so you know exactly what it costs.

Pet insurance

Pet insurance protects both pets and their owners in the case of illness or emergency. It can also be used to offset the costs of many typical visits to the vet. And it's not expensive (under $100 per month, depending on whether you have a cat or dog and their breed). Pet insurance doesn't work exactly like health insurance for humans, however, as owners get reimbursed after a visit as opposed to the insurer paying the provider directly.

Why you should consider increasing it: More coverage can lead to more savings. While an accident-only policy, for example, is good for things like broken bones, you're not going to be going to the vet for that very often (and hopefully not at all). So you'll essentially be paying for something that you don't use. But if you increase your pet insurance coverage you could put yourself in the running for additional savings. Do the math. Determine what a larger policy would cost and then compare that to the potential savings it could result in. Don't forget that a higher deductible could also save you money over time by guaranteeing a lower premium. 

You can get a free pet insurance quote in 30 seconds here now.

Car insurance

Car insurance protects drivers and their passengers in the event of an accident. In most states, auto liability coverage, which pays for covered damages and injuries stemming from an accident you're responsible for, is mandatory. You can also secure comprehensive auto insurance, which protects against losses not incurred via an accident and collision, which can pay for damages to your vehicle. 

Why you should consider increasing it: "Americans continue to drive more than during the height of the pandemic, with preliminary Federal Highway Administration data showing a 1.6% increase in vehicle miles traveled, or about 39 billion miles," the National Highway Traffic Safety Administration (NHTSA) said this month. More people on the road could lead to more traffic and potentially more accidents. Make sure you have enough coverage to protect yourself should something go wrong.

See how much coverage you need - and how much you could be saving - with Progressive here.

The bottom line

Everyone's personal financial situation and goals are different. It's possible that your lifestyle and plans for 2023 are similar to last year's, at which point your current coverage amounts may suffice. But if you're unsure if the amount you have is enough - or if you simply want to take out a new policy like pet insurance for the first time - now is a good time to act.

You can easily check the prices for pet insurance from insurer Lemonade online now.

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