A New Year's resolution worth keeping

DENVER, Jan. 2 — Every year millions of Americans make New Year's resolutions. Some of the most common resolutions include losing weight, quitting smoking and spending more time with family.

Unfortunately, most people break their New Year's resolutions soon after the first of the year. According to a paper published in the Journal of Clinical Psychology, 22 percent of resolvers break their resolution after a week. After three months, half the adults surveyed have called it quits.

One annual resolution that is easy to keep - and takes no special will-power or trips to a gym - is to review your insurance coverage.

AAA Colorado has designated January as Insurance Review Month to remind everyone that an annual review of all insurance coverage is critical for safety, security and peace of mind. Following are some tips on insurance from AAA Colorado, one of the largest agencies in the state specializing in personal lines insurance.

• Home Insurance- Homeowners insurance can be confusing because it offers such a broad range of coverage. Verify that your homeowners insurance meets your property and liability needs. Consider the following:
  1. Did you make a major improvement in 2007? Your coverage needs to keep pace with any improvements that have increased the value of your home.
  2. Most homeowners insurance policies cover the structure of a home and its contents. However, some policies may not always offer adequate coverage for personal liability, which will protect you if someone is injured on your property and you are liable for medical expenses. Liability coverage typically provides up to $100,000 in coverage, with higher levels available.
  3. Be prepared in case you have to file a claim. Create a household inventory by photographing or videotaping items. Keep receipts for valuable items. Keep copies of documents and information in a safe place outside your home.
  4. For those who rent, renters and condo insurance can be surprisingly inexpensive for protecting your home's contents in case of fire or robbery.
• Auto Insurance- Each year most motorists renew their auto insurance policy without considering whether they can find better coverage at a less expensive price. Consider the following:
  1. Is your insurance company financially solid and able to support claims?
  2. Does your current insurance offer competitive rates?
  3. What discounts are offered and is your insurance provider giving you all the discounts you are eligible for?
  4. What level of customer service does the current insurer provide? Is there 24-hour claim service available with a knowledgeable staff who can answer all of your questions?
  5. Review the liability limit on your insurance to make sure that it provides adequate protection. Talk to a trusted insurance agent to determine if your liability is below where it should be.
• Life Insurance- Verify that you have enough coverage to protect your family's future. The life insurance coverage most people carry is not sufficient. Consider the following:
  1. Establish the appropriate amount of coverage beyond the final costs such as funeral expenses. Regardless of which spouse is the primary earner, both need to carry enough coverage to replace any lost income or rise in household expenses if one were to die.
  2. Consider adding protection to cover at least six months of emergency living expenses, the sum of all outstanding debt, and the cost of college education for all children.

"Just like any product or service, it's important for consumers to annually shop around for the best insurance that fits their unique needs," says Jim Rookard, Director of Insurance Services for AAA Colorado. "Most importantly, though, is that consumers should always consider what they are purchasing and determine if it provides proper coverage at a competitive price. The cheapest insurance may represent the least value when you need service or have a claim."

For more insurance information, visit www.aaa.com and click on "Insurance/Financial" or www.rmiia.org, the website for the Rocky Mountain Insurance Information Association, a non-profit insurance communications organization.

AAA Colorado has more than 500,000 members in Colorado and is an advocate for safety and security for all travelers. As North America's largest motoring and leisure travel organization, AAA provides nearly 51 million members with travel, insurance, financial and automotive-related services, as well as member-exclusive savings. AAA can be visited on the Internet at www.aaa.com.

Media: Sign up to receive news and updates from AAA.
Our Press Releases are also available via RSS Feed.