Insurance Buying Guide

Tips for Buying Insurance

14 Dec , 2014  

When buying insurance, there are some things you may not know and wish you did. Purchasing insurance can be an overwhelming task with all the options and providers to choose from. Here are a few tips to help you make an informed decision when buying insurance.

We all want to save money when shopping for insurance; however, the cheaper policies are not always your best choice. Insurance policies can vary greatly depending on the premium you pay. For example, if you purchase a state minimum requirement car insurance policy, you likely are not going to have very great coverage. You would be surprised how a few extra dollars towards your premium can dramatically change the quality of your coverage. You may want to save more now by paying a lower premium but end up paying more in the long run if it turns out you aren’t sufficiently covered.

If you’re concerned about paying high insurance premiums, you may want to consider choosing a higher deductible. A higher deductible will lower your premium payment while still allowing you a quality coverage policy. You would pay higher out of pocket costs if you do need to file a claim but still have the coverage you want. You can take the money you save from lower premium costs and put it towards a savings account. That way you have money set aside to pay your deductible if a loss occurs.

Another thing to consider when buying insurance is to take out disaster coverage. For example, you may have hurricane coverage but still not be covered if a flood occurs as a result of the hurricane. Check with the National Flood Insurance Program (NFIP) for flood policy pricing. Make sure you don’t under insure either. Even if your mortgage company only requires you to have coverage at or above your unpaid principle balance, you are better off with a policy that includes guaranteed replacement cost. Stay informed, weigh your options, and be realistic about the coverage you need and you can’t go wrong.

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Common Mistakes of Insurance Buyers

Auto Insurance Mistakes To Avoid

21 Nov , 2014  

Auto insurance is something that most people must have at some point throughout their lifetime, and it’s important not to make mistakes trying to save on your policy. Comparing different companies and rates can help you save, but you have to know what you need before you start shopping. You always want to make sure that you have all of the coverage you need, and you want to avoid the following.

Getting the Bare Minimum
Don’t assume that the bare minimum policy is the best for your automobile, just because the vehicle isn’t brand new. The basic policy may leave out things like theft, natural disasters and more, and then you will have to pay for all of the lost items or damages on your own.

You also may only have to pay a couple of extra dollars a month for tow coverage, which could save you a lot if you end up needing a tow throughout the year. If you would have no form of transportation if something happened to your vehicle, the additional cost for a plan with rental coverage may also be worth the investment.

Choose Unrealistic Deductible
You can save money when you raise the deductible on your auto insurance policy. This is the amount that you have to pay if you make a claim with your insurance provider. If you make the amount too large so you can save a lot of money on your policy, and you can’t afford to pay it when something happens to your vehicle, you will be out of luck.

Letting Insurance Expire
If you are shopping for insurance and you have let your old insurance policy expire, this is a huge mistake. The new insurance provider is going to consider you a high risk applicant who has been driving without coverage, and they may charge you more because you have been reckless. Driving without insurance is also against the law, and you could face criminal charges if something happened.

If you have a lean on your vehicle, there may be a specific amount of insurance that your lender requires you have at all times, and you’ll want to know this amount before you start shopping. There are a lot of benefits to having a high quality auto insurance policy, and you don’t want to find out that you have a mediocre policy by getting into an accident and drowning in bills.

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