Insurance Tips

If you’re new to shopping for auto insurance, homeowners insurance or life insurance, then here are some useful tips that can help you when shopping for a policy. While this is not a comprehensive guide to everything that you need to know in order to purchase one of these policies, it is an excellent jumping off point for insurance policy shopping.

  1. Buy Auto Insurance: In almost every state in the country, having an auto insurance policy is a requirement. If you’re not covered, then you could be left with a car repair bill and other difficulties if you’re ever involved in an accident, regardless of whether or not it’s your fault.
  2. Carefully consider your coverage: While purchasing the minimum amount of auto insurance required by your state is always an option, you may not find that policy particularly useful in the event that something unforeseen happens to your car. Be sure to look into collision coverage, as well as auto glass and comprehensive coverage.
  3. Consider quotes from different providers: With many companies offering auto insurance, there is a lot of competition in the marketplace for new customers. For this reason, it’s wise to investigate quotes from multiple providers before you select one, as you could potentially save a great deal of money.
  4. Look into multi-policy discounts: If, for example, you already have a homeowners or renters insurance policy with a major provider, you may be eligible for a multi-policy discount when purchasing auto insurance. Talk to your current insurance provider to see if this is an option before you elect to go with a different provider for your auto insurance.
  5. Ask about other potential discounts: When dealing with an insurance broker, be sure to investigate different discounts that the provider might offer. For example, if you don’t drive a lot, you might be eligible for a low-mileage discount, or if you’re a student, then you might be eligible for a student discount.
  1. Buy homeowners insurance: You’ve made a substantial investment in your home and the items that it contains. In the event that the worst comes to pass, you’ll wish that you’d protected your investment by purchasing homeowners insurance.Even worse, you could be left entirely homeless if you have insufficient savings to cover yourself in such an event.
  2. Get an accurate appraisal of your home’s value: In the event that your house is significantly damaged you want to have a homeowner’s insurance policy that can fully cover the cost of rebuilding. Don’t simply rely on the tax assessment value of your property. Instead, consider hiring a local construction company to help you with getting an accurate appraisal.
  3. Make sure you shop around: Many different insurance providers offer homeowners insurance, and each provider has their pros and cons. Be sure to research each insurance provider that you’re considering, and carefully consider their track record with processing claims before you decide to purchase a policy.
  4. Don’t focus too heavily on the premiums: When you’re shopping around for a homeowner’s insurance policy, don’t be blinded by low premium payments. While those policies may save you money in the short term, in the event that something happens to your home, you may find that the coverage you’ve purchased is entirely insufficient for your needs. Worse yet, the insurance provider could be utterly unresponsive to your claim, as many cut-rate insurance companies don’t have an excellent track record when it comes to customer service.
  5. Always examine additional coverage: A simple homeowner’s insurance policy does not cover all eventualities, especially natural disasters like hurricanes, earthquakes, tornados, floods and wildfires. If you live in an area where these events might pose a risk to your home, strongly consider adding coverage for these eventualities.
  1. Decide if you need life insurance in the first place: While many will tell you that having a life insurance policy is always a good idea, the fact is that for many individuals it simply doesn’t make sense. Those who should strongly consider purchasing life insurance are those who have families and dependents that rely on their earning power, and those who are concerned with passing money onto beneficiaries after their deaths. If you’re single, a life insurance policy doesn’t make a great deal of sense, unless you’re considering it as an investment opportunity.
  2. Consider the amount of coverage you need: Like the people that hold them, each life insurance policy is unique. Before you begin shopping, develop and accurate portrait of your financial situation – your assets, your debts, and your income – as well as your family situation – number of dependents, your spouse’s income. This should help you to determine how much the benefit of your life insurance policy should be. A common rule of thumb is to multiply your yearly income by a factor of between 5 and 10, depending upon the extent of the above considerations.
  3. Understand the different kinds of policies: Life insurance comes in a variety of packages, and each one serves different needs. For most, a term life insurance policy will likely be sufficient. However, if you’re concerned about estate planning and passing on money to beneficiaries, then you should strongly consider purchasing a whole life or universal life insurance policy.
  4. Consider a life insurance policy as an investment opportunity: While more expensive then term life insurance policies, whole life and universal life insurance policies give you the opportunity to generate tax-deferred savings. In addition, some policies will allow you to invest some of the money you’ve paid in premiums into stocks, bonds and mutual funds. While this obviously poses a level of risk, there is also the potential for profit.
  5. Carefully do your homework: The terms and stipulations of various life insurance policies can be incredibly complex. Be sure to take an adequate amount of time to review any policy before you purchase it. If you need assistance, consider consulting with a neutral third party who understands your needs and situation and can offer unbiased, objective advice.