Home and Auto Insurance: Why January Is the Best Month to Review Your Policy and Stop
Overpaying
By the Editorial Team at Musa Magazine
When we sit down to make our January budget, we usually focus on cutting “small” expenses: fewer coffees out, canceling a gym membership we don’t use, or cooking more at home. But we often ignore the elephant in the room: fixed expenses.
We assume our home and auto insurance bills are untouchable—a necessary evil we just pay and move on. The truth is, January is the most strategic moment to audit these policies. Why? Because insurance rates change constantly, and your life probably changed over the past year too.
Here’s why reviewing your insurance now could save you hundreds of dollars in 2026.
The “Loyalty” Myth
There’s a common belief that if you’ve been with the same company for 10 years, you’re getting the best price. Unfortunately, in the insurance industry, the opposite often happens. It’s called “price optimization”: companies assume you won’t leave, so they slowly raise your premium at every renewal.
The strategy: Spend one hour shopping around. If you find a better offer, call your current agent. Many times, they’ll match the competitor’s price to keep you as a client.
Did Your Life Change? Your Insurance Should Too
If your policy renewed automatically, it’s still based on your life from a year ago.
• Remote work: Did you start working from home in 2025? If you’re no longer commuting daily, your annual mileage has dropped significantly. Fewer miles mean less risk—and that should mean a lower rate.
• Home improvements: Did you replace your roof? Install an alarm system or security cameras? These upgrades reduce the risk of damage or theft. If you didn’t tell your insurer, you’re leaving money on the table.
The Power of Bundling
This is the golden rule, yet many people forget it. Having your car insured with Company A and your home with Company B is usually more expensive.
The strategy: Bundling both policies with the same company almost always guarantees a “bundling discount,” typically between 10% and 25%.
Review Your Deductible
The deductible is what you pay out of pocket before insurance covers the rest.
• With a low deductible (for example, $250), your monthly premium will be higher.
• If you raise your deductible to $1,000, your monthly payment drops significantly.
The strategy: If you already have an emergency fund (remember the savings challenge?), you can afford a higher deductible and enjoy a lower monthly bill.
Don’t let autopay make decisions for you. One simple call or online quote this month can free up real money for your other goals this year. Make your money work for you.