When you’re buying insurance, whether it’s auto, health, or any other type, don’t select the first policy you find. As with any purchase, be a smart shopper. These strategies will help you find the best insurance policies for your specific needs and lifestyle.
Compare to Find the Best Offers
Shopping for insurance is surprisingly easy thanks to online quote tools on sites like Policygenius and directly through insurance company portals. Websites like Compare.com and NetQuote offer four or five insurance options side by side, allowing you to compare prices, policy terms, and other important details.
Insurance companies are competing against each other for business, so take advantage of competition to find the best value. If the policy or company you want to purchase has a higher price tag than other policies, connect with a customer service representative and ask if any discounts are available. You may be surprised to hear how many deals and savings are available if you’re persistent.
Ask About Restrictions and Exclusions
Every insurance policy has restrictions and exclusions. An exclusion is any provision outlined in your policy language that explicitly states certain kinds of losses will not be covered by your policy. Don’t wait until after an emergency to find out what your policy exclusions are.
Read the fine print and terms of every policy you consider to make sure you don’t lock yourself into an unfair or unappealing agreement. For example, some popular homeowner’s insurance policies don’t cover the damage caused by natural disasters like flooding.
Bundle Policies With One Company
Bundling is one of the easiest ways to save money. Most insurance companies offer significant discounts to customers who purchase multiple policies with them. For example, you can purchase your home, auto, and boat insurance through a multi-insurance provider like Geico or Allstate. You might receive a 5% or 10% discount on your monthly policy premiums as a result.
(Especially) When Buying Insurance, Cheaper Isn’t Always Better
It’s always tempting to save money, but if the cost of your insurance policy is dramatically lower than the cost of other policies, it could be a red flag. Cut-rate insurance prices increase the chances of poor customer service, unreliable claims, and other unwanted headaches. Check any insurance company’s ratings with the Better Business Bureau, J.D Power and Associates, or Insure.com to make sure you’re not falling for a scam at worse, or in for a miserable experience at best.
Always Tell the Truth
Applying for insurance gets personal. You’ll provide information from your history, such as details on your medical records. Concealing the information you don’t want to admit can lead to your insurance policy being canceled or nullified. Your insurance company isn’t legally obligated to honor your policy or pay claims if it discovers you purposefully misrepresented the truth at any time. Don’t risk your money, reputation, or safety by lying.
Choose Between Minimum, Standard, or Comprehensive Coverage
Most insurance policies offer a range of coverage levels. Minimum coverage is the most affordable because it only offers low coverage. Meanwhile, comprehensive coverage has a higher price tag because it offers maximum protection.
Minimum coverage is easier on your wallet, but comprehensive coverage has many more benefits. If pricing is an issue, you can always begin with minimum coverage and upgrade your policy when your finances allow. Some insurance coverage is better than none, after all. If you have the wiggle room in your budget to opt for comprehensive coverage, work with an insurance agent to guarantee your coverage options make sense for your needs.
Read about micro-investing and how to get started with our complete guide: Micro-Investing: What It Is, Why It’s for You and How to Start.
