For most people, launching a comprehensive review of their insurance coverage — auto, homeowners, life — ranks right up there with a visit to the dentist’s office.
Generally, people should review their insurance coverage periodically, and especially if there’s a life event such as the birth of a baby, the purchase of a new house, a change of jobs. Because military folks are transferred from state to state, it’s particularly important for them to keep on top of their coverage. Rules and requirements vary from state to state, particularly for auto insurance.
Military Times put two service members in touch with JJ Montanaro, a certified financial planner for USAA, who reviewed their insurance policies to make sure they’re adequately covered.
He found the soldier and sailor both needed to consider bumping up their property damage coverage on their auto insurance policies. The minimum requirements for property damage coverage are fairly low in most states, Montanaro said, and he thinks it’s common for people to be underinsured on that front.
States have different minimum requirements for such coverage, which protects policyholders in the event the driver damages someone else’s vehicle or property (such as a fence).
“When I talk to people, I tell them next time they are out driving to take a look at the two or three other cars in front of them and imagine what would happen if they were financially responsible for totaling those vehicles,” Montanaro said.
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